Daily Wrap: The Biggest Hedge Fund Moves of the Day

Adage Capital Adds 900,000 Shares of Independence Contract Drilling

Adage Capital Management‘s stake in Independence Contract Drilling Inc. (NYSE:ICD) has gone up according to a recent 13G filing with the Securities and Exchange Commission. Managed by Phil Gross and Robert Atchinson, the fund’s holding of the stock stood at 1.45 million shares at the end of the June quarter, and has now climbed to 2.35 million shares or 6.24% of Independence Contract Drilling’s outstanding stock.

As its name suggests, Independence Contract Drilling Inc. (NYSE:ICD) is a company that provides professional land drilling services. Year-to-date, the company’s stock has increased by 11.49%. In its financial report for the second quarter of 2016, Independence Contract Drilling reported a loss per share of $0.12, missing analysts’ consensus estimate of a loss per share of $0.10, and revenue of $15.2 million, beating estimates of $14.8 million. Earlier this month, FBR & Co reiterated its ‘Buy’ rating on Independence Contract Drilling’s stock.

Marcato Capital and Buffalo Wild Wings Continue to Clash

A recently amended 13D filing with the Securities and Exchange Commission revealed that Richard McGuire‘s Marcato Capital Management has sent a letter to the Board of Directors of Buffalo Wild Wings Inc (NASDAQ:BWLD) revealing its disappointment with various moves made by the company’s management.

First of all, Marcato Capital is dissatisfied with the company’s choice to hire three new Directors on October 6, without any consultation with its shareholders. The fund finds this move to be an attempt to form a fake impression of important changes happening within the company, and yet another act made without the consent of its shareholders. Marcato Capital was also disappointed with the contents of a long-sought list of the company’s shareholders which was finally delivered to it, but which turned out to be outdated and incomplete. Marcato Capital is of the opinion that Buffalo Wild Wings is intentionally hindering communication between its shareholders, and that if it continues to do so, the fund will have to engage in litigation, though it will wait for a response to its latest letter before resorting to that. Marcato Capital still holds 950,000 shares of the company, which amass 5.2% of the float.

Buffalo Wild Wings is a sports bar and casual dining restaurant franchise, known for serving specially prepared chicken wings and sauces. Since the beginning of the year, the company’s stock is down by 10.68%. Among the hedge funds followed by Insider Monkey, 25 reported having long positions in Buffalo Wild Wings (NASDAQ:BWLD) as of the end of June, down from 29 as of the end of March.

Disclosure: None