According to a freshly-amended 13D filing with the SEC, Sander Gerber‘s Hudson Bay Capital Management has significantly decreased its stake in Hc2 Holdings Inc. (NYSEMKT:HCHC). The fund now holds 594,521 common shares, which amass 1.4% of the float. The fund’s stake was lowered from 3.73 million shares, which represented 8.9% of the company’s outstanding stock, as per its most recent 13D filing on the company prior to the current one.
HC2 Holdings is a holding company that runs seven divisions: Telecommunications, Manufacturing, Life Sciences, Insurance, Utilities, Marine Services, and Other. Recently, an HC2 Holdings’ portfolio company within one of its subsidiaries, MediBeacon, announced a cooperation with scientists at Washington University School of Medicine on a research project funded by the Bill & Melinda Gates Foundation. Over the past 12 months, the company’s shares have lost 32.49%. For the second quarter of 2016, HC2 Holdings disclosed EPS of $0.02 and revenue of $359.3 million, an improvement compared to the loss per share of $0.47 and revenue of $280.99 million that it managed for the same period of the previous year.
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Seven hedge funds from within Insider Monkey’s database reported holding long positions in Hc2 Holdings Inc. (NYSEMKT:HCHC) as of the end of June, down from 11 three months earlier. Among the bullish investors were William Martin’s Raging Capital Management, which held a position valued at $11.69 million, Dov Gertzulin’s DG Capital Management, with a position worth $2.02 million, Luke and John Fichthorn’s Dialectic Capital Management, and Cliff Asness’ AQR Capital Management.
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Some of the investors who dropped their positions in Hc2 Holdings Inc. (NYSEMKT:HCHC) during the June quarter encompassed John Orrico’s Water Island Capital, which dumped its position in the company valued at $2.08 million at the end of March, J. Carlo Cannell’s Cannell Capital, which said goodbye to a position worth $683,000, Jim Simons’ Renaissance Technologies, and Israel Englander’s Millennium Management.
You can access the original SEC filing by clicking here.
Ownership Summary Table
| Name | Sole Voting Power | Shared Voting Power | Sole Dispositive Power | Shared Dispositive Power | Aggregate Amount Owned Power | Percent of Class |
|---|---|---|---|---|---|---|
| Hudson Bay Credit Management | 0 | 594,521 | 0 | 594,521 | 594,521 | 1.4% |
| Hudson Bay Capital Management | 0 | 594,521 | 0 | 594,521 | 594,521 | 1.4% |
| Sander Gerber | 0 | 594,521 | 0 | 594,521 | 594,521 | 1.4% |
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Page 1 of 7 – SEC Filing
| SECURITIES AND EXCHANGE COMMISSION | |
| Washington, D.C. 20549 | |
| SCHEDULE 13D/A | |
| Under the Securities Exchange Act of 1934 | |
| (Amendment No. 8)* | |
| HC2 Holdings, | |
| (Name of Issuer) | |
| Common Stock, | |
| (Title of Class of Securities) | |
| 404139107 | |
| (CUSIP Number) | |
| Scott Black | |
| General Counsel and Chief Compliance Officer | |
| Hudson Bay Capital Management LP | |
| 777 Third Ave., 30th Floor | |
| New York, NY 10017 | |
| (646) 825-2155 | |
| with a copy to: | |
| Eleazer N. Klein, Esq. | |
| Schulte Roth & Zabel LLP | |
| 919 Third Avenue | |
| New York, NY 10022 | |
| (212) 756-2000 | |
| (Name, Address and Telephone Number of Person | |
| Authorized to Receive Notices and Communications) | |
| October 13, | |
| (Date of Event Which Requires Filing of This Statement) | |
If the filing person has previously filed a statement on Schedule
13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), Rule
13d-1(f) or Rule 13d-1(g), check the following box. [ ]
(Page 1 of 7 Pages)
______________________________
* 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 disclosures provided in a prior cover page.
The information required on 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 7 – SEC Filing
| 1 | NAME OF REPORTING PERSON Hudson Bay Credit Management LLC | |||
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) ¨ (b) ¨ | ||
| 3 | SEC USE ONLY | |||
| 4 | SOURCE OF FUNDS AF | |||
| 5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) | ¨ | ||
| 6 | CITIZENSHIP OR PLACE OF ORGANIZATION Delaware | |||
| NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH: | 7 | SOLE VOTING POWER -0- | ||
| 8 | SHARED VOTING POWER 594,521 | |||
| 9 | SOLE DISPOSITIVE POWER -0- | |||
| 10 | SHARED DISPOSITIVE POWER 594,521 | |||
| 11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 594,521 | |||
| 12 | CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | ¨ | ||
| 13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.4% | |||
| 14 | TYPE OF REPORTING PERSON IA | |||
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Page 3 of 7 – SEC Filing
| 1 | NAME OF REPORTING PERSON Hudson Bay Capital Management LP | |||
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) ¨ (b) ¨ | ||
| 3 | SEC USE ONLY | |||
| 4 | SOURCE OF FUNDS AF | |||
| 5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) | ¨ | ||
| 6 | CITIZENSHIP OR PLACE OF ORGANIZATION Delaware | |||
| NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH: | 7 | SOLE VOTING POWER -0- | ||
| 8 | SHARED VOTING POWER 594,521 | |||
| 9 | SOLE DISPOSITIVE POWER -0- | |||
| 10 | SHARED DISPOSITIVE POWER 594,521 | |||
| 11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 594,521 | |||
| 12 | CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | ¨ | ||
| 13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.4% | |||
| 14 | TYPE OF REPORTING PERSON IA | |||
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Page 4 of 7 – SEC Filing
| 1 | NAME OF REPORTING PERSON Sander Gerber | |||
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) ¨ (b) ¨ | ||
| 3 | SEC USE ONLY | |||
| 4 | SOURCE OF FUNDS AF | |||
| 5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) | ¨ | ||
| 6 | CITIZENSHIP OR PLACE OF ORGANIZATION United States | |||
| NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH: | 7 | SOLE VOTING POWER -0- | ||
| 8 | SHARED VOTING POWER 594,521 | |||
| 9 | SOLE DISPOSITIVE POWER -0- | |||
| 10 | SHARED DISPOSITIVE POWER 594,521 | |||
| 11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON 594,521 | |||
| 12 | CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | ¨ | ||
| 13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.4% | |||
| 14 | TYPE OF REPORTING PERSON IN | |||
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Page 5 of 7 – SEC Filing
This Amendment No. 8 (“Amendment No.
8”) amends and supplements the statement on Schedule 13D filed with the Securities and Exchange Commission
(the “SEC”) on June 9, 2014 (the “Original Schedule 13D”), as amended by Amendment No.
1 filed with the SEC on September 25, 2014 (“Amendment No. 1”), Amendment No. 2 filed with the SEC on
August 14, 2015 (“Amendment No. 2”), Amendment No. 3 filed with the SEC on October 13, 2015
(“Amendment No. 3”), Amendment No. 4 filed with the SEC on October 20, 2015 (“Amendment No.
4”) and Amendment No. 5 filed with the SEC on November 10, 2015 (“Amendment No. 5”), Amendment
No. 6 filed with the SEC on November 19, 2015 (“Amendment No. 6”), and Amendment No. 7 filed with the SEC
on October 11, 2016 (“Amendment No. 7” and together with the Original Schedule 13D, Amendment No. 1,
Amendment No. 2, Amendment No. 3, Amendment No. 4, Amendment No. 5, Amendment No. 6 and this Amendment No. 8, the
“Schedule 13D”) with respect to the shares of Common Stock, $0.001 par value per share (the
“Common Stock”), of HC2 Holdings, Inc., a
Delaware corporation (the “Company”). Capitalized terms used
herein and not otherwise defined in this Amendment No. 8 have the meanings set forth in the Schedule 13D. This Amendment No.
8 amends Items 3 and 5 as set forth below. This is the final amendment to the Schedule 13D and constitutes an
“exiting filing” for the Reporting Person.
| Item 3. | SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION |
| Item 3 of the Schedule 13D is hereby amended and supplemented as follows: | |
| HB Fund acquired the 594,521 shares reported herein pursuant |
| Item 5. | INTEREST IN SECURITIES OF THE ISSUER |
| Paragraphs (a) – (c) and (e) of Item 5 of the Schedule 13D are hereby amended and restated as follows: | |
| (a) | See rows (11) and (13) of the cover pages to this Schedule 13D for the aggregate number of shares of Common Stock and percentages of the Common Stock beneficially owned by each of the Reporting Persons. References to percentage ownerships of Common Stock in this Schedule 13D are based upon 41,818,944 shares that the Reporting Persons were informed by the Company are currently outstanding. The Reporting Persons may be deemed to beneficially own an aggregate of 594,521 shares of Common Stock, which represents approximately 1.4% of the Company’s Common Stock, calculated in accordance with Rule 13d-3 under the Act. |
| By virtue of the relationship described herein, the Reporting Persons may be deemed to constitute a “group” for purposes of Rule 13(d)(3) of the Act. As a member of a group, each Reporting Person may be deemed to share voting and dispositive power with respect to, and therefore beneficially own, the shares beneficially owned by members of the group as a whole. The filing of this Statement shall not be construed as an admission that a Reporting Person beneficially owns those shares held by any other member of the group. In addition, each Reporting Person expressly disclaims beneficial ownership of any securities reported herein except to the extent such Reporting Person actually exercises voting or dispositive power with respect to such securities. | |
| (b) | See rows (7) through (10) of the cover pages of this Schedule 13D for the number of shares of Common Stock |
| (c) | HB Fund entered into transactions in the shares of Common Stock since the filing of Amendment No. 7, which |
| (e) | October 13, 2016. |
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Page 6 of 7 – SEC Filing
SIGNATURES
After reasonable inquiry and to the best
of his or its knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true,
complete and correct.
Date: October 17, 2016
| HUDSON BAY CREDIT MANAGEMENT LLC | |
| By: /s/ Sander Gerber | |
| Name: Sander Gerber | |
| Title: Authorized Signatory | |
| HUDSON BAY CAPITAL MANAGEMENT, L.P. | |
| By: /s/ Sander Gerber | |
| Name: Sander Gerber | |
| Title: Authorized Signatory | |
| /s/ Sander Gerber | |
| SANDER GERBER |
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Page 7 of 7 – SEC Filing
Schedule A
This Schedule sets forth
information with respect to each purchase and sale of shares of Common Stock which were effectuated by the HB Fund since the filing
of Amendment No. 7. All transactions were effectuated in the open market through a broker. The amounts reported in the “Weighted
Average Price” column in the table below reflect a weighted average price for the shares of Common Stock purchased or sold.
The shares of Common Stock were purchased or sold, as applicable, in multiple transactions, each at a price within the range of
prices set forth in the “Range of Prices” column in the table below. The Reporting Persons shall undertake to provide
to the staff of the Securities and Exchange Commission, upon request, full information regarding such number of shares of Common
Stock purchased or sold, as applicable, within the range of prices set forth in the table below.
| Trade Date | Shares Purchased (Sold) | Price Per Share ($)* | Range of Prices ($)* |
| 10/12/2016 | (17,000) | 5.5424 | 5.43 – 5.61 |
| 10/13/2016 | (35,000) | 5.343461 | 5.27 – 5.48 |
| 10/14/2016 | (45,000) | 5.2806 | 5.15 – 5.49 |
* Excluding
commissions.
