Pine River Capital Raises Activist Stake in Camelot Information Systems Inc (ADR) (CIS)

Brian Taylor‘s Pine River Capital reported raising its stake in small-cap IT services company Camelot Information Systems Inc (ADR) (NYSE:CIS). According to Pine River’s filing, the fund currently holds 7.2% of the company’s common stock, up from 5.3% revealed in an earlier filing. The activist stake owned by Pine River amasses over 3.3 million shares, versus some 2.5 million revealed earlier. The fund initiated a position in Camelot earlier in October.

Apparently, Pine River Capital is not the only interested activist in the Chinese-based Camelot Information Systems Inc. (ADR) (NYSE:CIS). Rob Citrone’s Discovery Capital Management, revealed, in its latest 13F, holding around 1.4 million shares, worth $2.6 million.  It is followed by Jim Simons’ Renaissance Technologies holding approximately 853,400 shares, raising the position by 19% over the third quarter.  There has been another interested activist in the line-up for Camelot Information Systems Inc,(ADR) (NYSE:CIS). D.E.Shaw‘s D E Shaw, is another fund which holds a small position in the company, its stake containing 73,700 shares.

With a year-to-date return of 95%, Camelot has a market capital of 89.85 million. Camelot has traditional offered enterprise level services and applications, especially for Financial Industry Information. Last reported quarterly results, the third for the year, saw net revenue increase by 12.5%, corresponding to a jump  to $70.9million, from $63million a year ago.

In September 2013, Camelot Information Systems Inc. (ADR) (NYSE:CIS) proposed the move to privately-owned company, with the CEO Simon Yiming Ma and nearly 34 employees acquiring the remaining ADRs. Financial support of $70 million was provided by China Development Bank, while $20 million convertible debt was provided by Zoyi Management Consulting.

Disclosure: none

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