RealD (RLD): Altai Capital Reduces its Activist Stake

Rishi Bajaj, Toby Symonds, and Steve Tesoriere‘s Altai Capital has reduced its exposure to RealD (NYSE:RLD). The fund reported holding of 2.83 million shares of the company in its latest filing with the SEC, down from 4.51 million shares held by the fund earlier. Following the decrease, Altai’s activist stake in RealD amasses 5.7% of the common stock.

RealD (NYSE:RLD) is a company specialized in licensing 3D technology, holding a portfolio of products that enable 3D viewing experience in theaters, or homes. Its stock gained almost 40% since the beginning of the year, while over the past year it declined by 14%. The company has reported a net loss of $0.08 for the fourth quarter of the fiscal 2014, below the previous quarter profit of $0.07, but above the consensus estimates of around -$0.23. For the first quarter of the current fiscal year, RealD is expected to deliver EPS of $0.14.

RealD (NYSE:RLD) has initiated a lawsuit against a French company, Volfoni, accusing it of patent infringement. However, last month, the company decided to drop the lawsuit after settling that Volfoni does not distribute or sell its Smart Crystal Diamond product, and in case the company’s representatives in the U.S. begin selling the product, RealD intends to continue the suit, according to a statement.

Earlier in April, Jeffrey Smith’s Starboard Value has reported upping its position in RealD (NYSE:RLD) to 3.10 million shares, from 2.25 million shares held according to its latest 13F. Following the increase, Starboard’s activist stake amasses 6.3% of the company’s common stock. In addition, Brian Bares‘ Bares Capital Management reported ownership of 8.13 million shares in its latest 13F filing, while Mark Broach‘s Manatuck Hill Partners held 1.57 million shares as of the end of March.

A couple of days ago, Altai Capital reported a new position in its equity portfolio, represented by Servicesource International Inc (NASDAQ:SREV). The fund owns 8.22 million shares of Servicesource, the stake amassing almost 10% of the common stock.

Disclosure: none