Another Top-Tier Hedge Fund Acquires Stake in Square Inc. (SQ); Activist Jeffrey Ubben Boosts Stake in Oil Services Company & Other Moves

Forward Management Ups Stake in This REIT to 11.52%

In a Schedule 13G filing, Forward Management LLC, founded by J. Alan Reid Jr., reported ownership of 3.67 million shares of Ashford Hospitality Prime Inc. (NYSE:AHP), which constitute 11.52% of the company’s total amount of outstanding shares. This represents a massive increase from the stake of 35,000 shares disclosed in Forward’s 13F filing for the December quarter. Ashford Hospitality Prime mainly invests in high-revenue-per-available-room, luxury, upper-upscale and upscale hotels in gateway and resort locations. Just recently, the real estate investment trust announced that its Board completed a review of strategic alternatives announced in August, which also considered a possible sale of the company, dismissing a potential sale after receiving interest from various buyers. “…none of the indications were at levels that the independent directors, following consultation with their independent advisor, believed would provide adequate value to stockholders”, said Ashford Hospitality Prime Inc. (NYSE:AHP) in a statement earlier this month. Nonetheless, the Board did reveal plans to sell up to four of its assets that do not have “the RevPAR level and product quality consistent with the long-term vision” of the company, as well as commence a $50 million stock repurchase program and increase the quarterly cash dividend by 20% to $0.12 per diluted share. John Petry’s Sessa Capital had 2.33 million shares of Ashford Hospitality Prime Inc. (NYSE:AHP) in its equity portfolio at the end of December.

Friendly Activist Jeffrey Ubben Buys More Shares of This Oil Services Company

According to a newly-amended 13D, Jeffrey Ubben’s ValueAct Capital currently owns 39.32 million shares of Baker Hughes Incorporated (NYSE:BHI), which constitute 9.0% of the company’s outstanding common stock. This is up from the position of 23.25 million shares revealed in ValueAct’s previous 13D filing on the company, submitted with the SEC in early February. The public filing reveals that the friendly activist hedge fund acquired the shares of Baker Hughes because they seemed undervalued and represented an attractive investment opportunity. Moreover, Mr. Ubben’s investment firm intends to engage in discussions with the company’s Board members and management regarding value-enhancing opportunities, which may involve discussions about business, management, Board composition, operations, capital allocation, among other things. In November 2014, oil-services companies Halliburton Company (NYSE:HAL) and Baker Hughes Incorporated (NYSE:BHI) inked a merger agreement under which the former was set to acquire the latter in a stock-and-cash transaction. Under the terms of the merger, Baker Hughes shareholders were set to receive 1.12 shares of Halliburton and $19.00 in cash for each share of Baker Hughes. The deal between the second-largest and third-largest players in the oil services industry has been facing strong opposition from the U.S. Department of Justice (DOJ), which said the merger eliminates head-to-head competition in 23 products and services. D.E. Shaw & Co., founded by billionaire David E. Shaw, owned 5.19 million shares of Baker Hughes Incorporated (NYSE:BHI) on December 31.

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