Privet Fund Reports Upping Position in StarTek

According to a newly amended filing with the Securities and Exchange Commission, Privet Fund, managed by Ryan Levenson, has slightly increased its position in StarTek, Inc. (NYSE:SRT). The fund now holds over 1.3 million shares of the company, up from 1.1 million held before. The stake’s value amounts to $8.4 million, at the current stock price of the company, and it amasses 8.5% of the company’s outstanding common stock.

StarTek is involved in helping its clients with outsourcing some of their business processes with over 10,000 employees. Since outsourcing is gaining more and more value, StarTek has also been experiencing growth. The stock of the company has been up by 50% since the beginning of the year. In the third quarter, StarTek posted a 22.6% growth in its revenues in year-on-year terms, which totaled $58.4 million. The gross margin slightly fell to 11.2%, from 12.8%. At the same time, the company expanded its net loss to $1.8 million, from $1.2 million in the same period of last year. However, since the beginning of the year, until September, the net loss of the company was significantly reduced to $5.4 million, from $11.6 million in the first 9 months of 2012.

Earlier this year, StarTek bought Ideal Dialogue, a company engaged in solutions for improving customers’ experience for companies. The acquired company is considered a separate division of StarTek.

Several hedge funds out of those we track disclosed holding shares of StarTek. However, the largest position is held by Renaissance Technologies, managed by Jim Simons, which holds 361,700 shares. Ken Griffin‘s Citadel Investment Group, and Peak6 Capital Management, led by Matthew Hulsizer hold much significant stakes.

Disclosure: none

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