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Raging Capital Snapped Up Shares of Builders Firstsource, Inc. (BLDR)

Published on March 10, 2016 at 9:53 am by Meena Krishnamsetty in Hedge Funds, News

William Martin’s Raging Capital has been buying shares of Builders Firstsource Inc. (NASDAQ:BLDR) this year. The activist hedge fund had 2.6 million shares of Builders Firstsource in its 13F at the end of 2015. According to a recent filing, Martin purchased an additional 3.3 million shares through March 4th. You can access the original SEC filing by clicking here.

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At Q4’s end, a total of 30 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -23% from the previous quarter. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were upping their holdings considerably (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Alexander Medina Seaver’s Stadium Capital Management has the most valuable position in Builders FirstSource, Inc. (NASDAQ:BLDR), worth close to $53.7 million, accounting for 20.4% of its total 13F portfolio. Coming in second is Richard Barrera of Roystone Capital Partners, with a $41 million position; the fund has 2.3% of its 13F portfolio invested in the stock. Other peers with similar optimism encompass Phill Gross and Robert Atchinson’s Adage Capital Management and Israel Englander’s Millennium Management.

Because Builders FirstSource, Inc. (NASDAQ:BLDR) has experienced bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there lies a certain “tier” of hedge funds who were dropping their full holdings in the third quarter. Interestingly, Lee Munder’s Lee Munder Capital Group dumped the largest stake of all the hedgies followed by Insider Monkey, comprising about $15.8 million in stock. Richard Driehaus’s fund, Driehaus Capital, also cut its stock, about $8.3 million worth. These moves are interesting, as total hedge fund interest dropped by 9 funds in the third quarter.

Builders FirstSource shares lost about 15% so far this year.

Page 1 of 6 SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
(Rule 13d-102)

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT

TO RULES 13d-1(b), (c), AND (d) AND AMENDMENTS THERETO FILED
PURSUANT TO RULE 13d-2(b)
(Amendment No.   )1
Builders FirstSource, Inc.
 (Name of Issuer)
Common Stock, $0.01 par value
 (Title of Class of Securities)
12008R 10 7
 (CUSIP Number)
March 4, 2016
 (Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule is filed:
   x  Rule 13d-1(b)
   o  Rule 13d-1(c)
   o  Rule 13d-1(d)

_______________
1  The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.
      The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

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Page 2 of 6 SEC Filing

Item 1(a).
Name of Issuer:
Builders FirstSource, Inc.
Item 1(b).
Address of Issuer’s Principal Executive Offices:
2001 Bryan Street, Suite 1600
Dallas, Texas 75201
Item 2(a).
Name of Person Filing:
This statement is filed by Raging Capital Management, LLC, a Delaware limited liability company (“Raging Capital”), and William C. Martin.  Each of the foregoing is referred to as a “Reporting Person” and collectively as the “Reporting Persons.”
Raging Capital is the Investment Manager of Raging Capital Master Fund, Ltd., a Cayman Islands exempted company (“Raging Master”), in whose name the Issuer’s Common Stock, $0.01 par value per share (the “Shares”), are held.  William C. Martin is the Chairman, Chief Investment Officer and Managing Member of Raging Capital.  Raging Master has delegated to Raging Capital the sole authority to vote and dispose of the securities held by Raging Master pursuant to an Investment Management Agreement, dated November 9, 2012 (the “IMA”).  The IMA may be terminated by any party thereto effective at the close of business on the last day of any fiscal quarter by giving the other party not less than sixty-one days’ written notice.  As a result, each of Raging Capital and William C. Martin may be deemed to beneficially own the Shares held by Raging Master.
The filing of this Schedule 13G shall not be construed as an admission that the Reporting Persons are, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, the beneficial owners of any of the securities reported herein.  Each of the Reporting Persons specifically disclaims beneficial ownership of the securities reported herein.  Without limiting the foregoing sentence, Raging Master specifically disclaims beneficial ownership of the securities held by it by virtue of its inability to vote or dispose of such securities as a result of the IMA.
Item 2(b).
Address of Principal Business Office or, if none, Residence:
The principal business address of each of Raging Capital and William C. Martin is Ten Princeton Avenue, P.O. Box 228, Rocky Hill, New Jersey 08553.
Item 2(c).
Citizenship:
Raging Capital is organized under the laws of the State of Delaware.  William C. Martin is a citizen of the United States of America.
Item 2(d).
Title of Class of Securities:
Common Stock, $0.01 par value per share.
Item 2(e).
CUSIP Number:
12008R 10 7

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Page 3 of 6 SEC Filing

 
(ii)
Shared power to vote or to direct the vote
 
5,903,096 Shares
 
(iii)
Sole power to dispose or to direct the disposition of
 
0 Shares
 
(iv)
Shared power to dispose or to direct the disposition of
 
5,903,096 Shares
Mr. Martin
 
(a)
Amount beneficially owned:
 
5,903,096 Shares
 
(b)
Percent of class:
 
5.4% (based upon 109,267,948 Shares outstanding, which is the total number of Shares outstanding as of November 18, 2015 as reported in the Issuer’s Prospectus Supplement to Prospectus filed with the Securities and Exchange Commission on November 23, 2015).
 
(c)
Number of shares as to which such person has:
 
(i)
Sole power to vote or to direct the vote
 
0 Shares
 
(ii)
Shared power to vote or to direct the vote
 
5,903,096 Shares
 
(iii)
Sole power to dispose or to direct the disposition of
 
0 Shares
 
(iv)
Shared power to dispose or to direct the disposition of
 
5,903,096 Shares
Item 5.
Ownership of Five Percent or Less of a Class.
If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following [  ].

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Page 4 of 6 SEC Filing

Item 6.
Ownership of More than Five Percent on Behalf of Another Person.
Not Applicable.
Item 7.
Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company or Control Person.
See Item 2(a).
Item 8.
Identification and Classification of Members of the Group.
See Exhibit 99.1.
Item 9.
Notice of Dissolution of Group.
Not Applicable.
Item 10.
Certifications.
By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.

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Page 5 of 6 SEC Filing

SIGNATURES
After reasonable inquiry and to the best of his knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.
Dated: March 7, 2016
Raging Capital Management, LLC
   
 
By:
/s/ Frederick C. Wasch
   
Name:
Frederick C. Wasch
   
Title:
Chief Financial Officer
 
/s/ Frederick C. Wasch
 
Frederick C. Wasch as attorney-in-fact for William C. Martin

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Page 6 of 6 SEC Filing

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