Glenn W. Welling‘s Engaged Capital is reducing its exposure to Magnachip Semiconductor Corp (NYSE:MX). The fund has recently cut its stake in the company to 3.5 million shares from the 3.85 million shares it held at the end of the third quarter of 2016. As a result, Engaged Capital now controls roughly 9.99% of Magnachip’s outstanding stock.
Magnachip Semiconductor Corp (NYSE:MX) designs and manufactures analog and mixed-signal semiconductor products for various applications. The company has a market cap of $293 million and does not pay a dividend. Although Magnachip’s stock suffered a major setback at the end of October, it still managed to end the year in the green, up by 19.2%. Shares are currently trading at an earnings multiplier of 6, while the industry average P/E is 75 according to Yahoo! Finance’s data. On January 10, Magnachip Semiconductor reported preliminary results for its fourth quarter of 2016. The company said revenue is estimated at $180 million, at the higher end of previous projections, while gross profit margin is in the region of 25%, ahead of previous estimates of 22% to 24%. Full financial results are expected to be released on February 9, after the closing bell.
Hedge fund interest in Magnachip Semiconductor Corp (NYSE:MX) picked up during the third quarter, with the number of long hedge fund positions having increased to 24 at the end of September from 16 registered a quarter before. Together, those 24 funds held approximately 55% of the company’s common stock. Marc Lasry‘s Avenue Capital held the largest position in Magnachip Semiconductor among the funds in our database, having indicated ownership of 4.09 million shares in its 13F filing for the September quarter. North Run Capital, run by Thomas Ellis and Todd Hammer, also had a major stake in Magnachip at the end of September, consisting of 3.4 million shares.
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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 |
---|---|---|---|---|---|---|
Engaged Capital Flagship Master Fund | 3,153,300 | 3,153,300 | 3,153,300 | 9.00% | ||
Engaged Capital Flagship Fund | 3,153,300 | 3,153,300 | 3,153,300 | 9.00% | ||
Engaged Capital Flagship Fund, Ltd | 3,153,300 | 3,153,300 | 3,153,300 | 9.00% | ||
Engaged Capital | 3,501,150 | 3,501,150 | 3,501,150 | 9.99% | ||
Engaged Capital Holdings | 3,501,150 | 3,501,150 | 3,501,150 | 9.99% | ||
Glenn W. Welling | 3,501,150 | 3,501,150 | 3,501,150 | 9.99% |
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Page 1 of 12 – SEC Filing
STEVE WOLOSKY
(Name, Address and Telephone Number of Person
Page 2 of 12 – SEC Filing
1 | NAME OF REPORTING PERSON Engaged Capital Flagship Master Fund, LP | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) o | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS WC, OO | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ¨ | |
6 | CITIZENSHIP OR PLACE OF ORGANIZATION CAYMAN ISLANDS | ||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7 | SOLE VOTING POWER 3,153,300* | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 3,153,300* | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,153,300* | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.00%* | ||
14 | TYPE OF REPORTING PERSON PN |
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Page 3 of 12 – SEC Filing
1 | NAME OF REPORTING PERSON Engaged Capital Flagship Fund, LP | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) o | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS OO | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 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 3,153,300* | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 3,153,300* | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,153,300* | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.00%* | ||
14 | TYPE OF REPORTING PERSON PN |
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Page 4 of 12 – SEC Filing
1 | NAME OF REPORTING PERSON Engaged Capital Flagship Fund, Ltd. | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) o | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS OO | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ¨ | |
6 | CITIZENSHIP OR PLACE OF ORGANIZATION CAYMAN ISLANDS | ||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7 | SOLE VOTING POWER 3,153,300* | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 3,153,300* | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,153,300* | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.00%* | ||
14 | TYPE OF REPORTING PERSON CO |
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Page 5 of 12 – SEC Filing
1 | NAME OF REPORTING PERSON Engaged Capital, LLC | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) o | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS OO | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 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 3,501,150* | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 3,501,150* | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,501,150* | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.99%* | ||
14 | TYPE OF REPORTING PERSON OO |
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Page 6 of 12 – SEC Filing
1 | NAME OF REPORTING PERSON Engaged Capital Holdings, LLC | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) o | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS OO | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 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 3,501,150* | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 3,501,150* | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,501,150* | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.99%* | ||
14 | TYPE OF REPORTING PERSON OO |
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Page 7 of 12 – SEC Filing
1 | NAME OF REPORTING PERSON Glenn W. Welling | ||
2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) o (b) o | |
3 | SEC USE ONLY | ||
4 | SOURCE OF FUNDS OO | ||
5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) | ¨ | |
6 | CITIZENSHIP OR PLACE OF ORGANIZATION USA | ||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH | 7 | SOLE VOTING POWER 3,501,150* | |
8 | SHARED VOTING POWER – 0 – | ||
9 | SOLE DISPOSITIVE POWER 3,501,150* | ||
10 | SHARED DISPOSITIVE POWER – 0 – | ||
11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,501,150* | ||
12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | o | |
13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.99%* | ||
14 | TYPE OF REPORTING PERSON IN |
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Page 8 of 12 – SEC Filing
Item 2. | Identity and Background. |
| (i) | Engaged Capital Flagship Master Fund, LP (“Engaged Capital Flagship Master”), a Cayman Islands exempted limited partnership formerly known as Engaged Capital Master Feeder II, LP, with respect to the Shares directly and beneficially owned by it; |
| (ii) | Engaged Capital Flagship Fund, LP (“Engaged Capital Fund”), a Delaware limited partnership formerly known as Engaged Capital II, LP, as a feeder fund of Engaged Capital Flagship Master; |
| (iii) | Engaged Capital Flagship Fund, Ltd. (“Engaged Capital Offshore”), a Cayman Islands exempted company formerly known as Engaged Capital II Offshore Ltd., as a feeder fund of Engaged Capital Flagship Master; |
| (iv) | Engaged Capital, LLC, a Delaware limited liability company (“Engaged Capital”), as the general partner and investment adviser of Engaged Capital Flagship Master and the investment adviser of a certain managed account (the “Engaged Capital Account”); |
| (v) | Engaged Capital Holdings, LLC, a Delaware limited liability company (“Engaged Holdings”), as the managing member of Engaged Capital; and |
| (vi) | Glenn W. Welling, as the Founder and Chief Investment Officer (“CIO”) of Engaged Capital and the sole member of Engaged Holdings. |
Item 3. | Source and Amount of Funds or Other Consideration. |
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Page 9 of 12 – SEC Filing
Item 5. | Interest in Securities of the Issuer. |
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Page 10 of 12 – SEC Filing
Item 6. | Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer. |
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Page 11 of 12 – SEC Filing
Engaged Capital Flagship Master Fund, LP | |||
By: | Engaged Capital, LLC General Partner | ||
By: | /s/ Glenn W. Welling | ||
Name: | Glenn W. Welling | ||
Title: | Founder and Chief Investment Officer |
Engaged Capital Flagship Fund, LP | |||
By: | Engaged Capital, LLC General Partner | ||
By: | /s/ Glenn W. Welling | ||
Name: | Glenn W. Welling | ||
Title: | Founder and Chief Investment Officer |
Engaged Capital Flagship Fund, Ltd. | |||
By: | /s/ Glenn W. Welling | ||
Name: | Glenn W. Welling | ||
Title: | Director |
Engaged Capital, LLC | |||
By: | /s/ Glenn W. Welling | ||
Name: | Glenn W. Welling | ||
Title: | Founder and Chief Investment Officer |
Engaged Capital Holdings, LLC | |||
By: | /s/ Glenn W. Welling | ||
Name: | Glenn W. Welling | ||
Title: | Sole Member |
/s/ Glenn W. Welling | |
Glenn W. Welling |