Prescott Group Capital Management Raises Position in Bluephoenix Solutions

Phil Frohlich‘s fund Prescott Group Capital Management disclosed, in a newly amended filing with the Securities and Exchange Commission, that it has recently upgraded its holding in Bluephoenix Solutions Ltd (NASDAQ:BPHX). Prescott owns above 3.3 million shares, which represent 29% of the company’s common stock. The position is activist by nature and has been raised from some 2.7 million shares reported by Prescott in the latest round of 13F filings. The value of the holding amounts to $14.3 million.

On Tuesday, Bluephonix Solutions revealed in a statement that it has completed the deal under the terms of which the company issued to Prescott’s affiliate Prescott Group Aggressive Small Cap Master Fund, ordinary shares worth $2.5 million.

Bluephonix is engaged in IT services related to automated database, application integration, and migration. At the beginning of October, the company announced about borrowing $1.0 million from Comerica Bank. The company will announce its results for the third quarter in the beginning of December. In the second quarter, the company posted a loss of $0.05 per share, which shows an improvement from $0.15 per share in the second quarter of last year.

Aside from Prescott, another hedge fund that holds shares of Bluephonix Solutions. Renaissance Technologies, led by Jim Simons disclosed holding 14,300 shares of the company, down by 1,800 shares of the quarter. The reported value of Renaissance’s holding amounts to $62,000.

Prescott Group Capital Management, led by Phil Frohlich is a hedge fund focused on small and mid-sized stocks of publicly traded companies. Amid the latest moves revealed by Prescott we can mention the fund’s discussion with management of PharmAthene, Inc. (NYSEMKT:PIP) regarding its merger, and a particular interest in China Marine Food Group Ltd (NYSEMKT:CMFO), in which Prescott has been buying shares for some time now.

Disclosure: none

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