Joel Ramin’s 12 West Capital Management disclosed today a new position in RetailMeNot Inc (NASDAQ:SALE). According to a Schedule 13G form filed with the SEC, the fund owns more than 2.87 million shares of Common Stock, which account for 5.3% of the company’s outstanding stock.
12 West Capital Management is a New York-based employee-owned hedge fund sponsor. It was founded by Joel Ramin in 2011, and focuses on value stocks of small-cap (under $2.5 billion in market cap) companies. The fund’s equity portfolio is currently concentrated in information technology and industrials stocks, and is worth more than $780 million. Mr. Ramin previously worked at Roberto Mignone’s Bridger Capital. Joel Ramin is known to undertake various short positions as well as long equity stakes, so we watch him very closely.
Back to the transaction of interest; RetailMeNot Inc (NASDAQ:SALE) is a $1.04 billion market cap digital coupon marketplace (the world’s largest) that connects consumers with retailers and brands. The company owns and operates digital coupon Websites in the United States (RetailMeNot.com) and the United Kingdom (VoucherCodes.co.uk). The company last reported, for the second quarter of 2014, net revenues of $59.5 million, up 37% year-over-year; net income of $4.3 million, down by 16% on the year, mainly due to increased investment primarily in product development, sales and marketing, and higher stock-based compensation expenses; and adjusted EBITDA of $19.7 million, up 25% year-over-year.
The filing presented by 12 West Capital Management says that the fund owns 2.87 million shares of RetailMeNot Inc (NASDAQ:SALE). This means that 12 West is the largest institutional shareholder (amongst those we track) in the company. Other funds that seem bullish on the company are Matt Sirovich And Jeremy Mindich’s Scopia Capital and George Soros’ Soros Fund Management. Scopia Capital started a position, with 2.37 million shares, over the second quarter, while Soros Fund Management raised its stake in RetailMeNot Inc (NASDAQ:SALE) during the same period by 27% to 1.28 million shares.
Despite these funds’ bullishness and a decent performance, insiders at RetailMeNot Inc (NASDAQ:SALE) have been selling their stock. At least 9 insiders have disposed of some shares since the end of the second quarter of 2014. The last one of them was Paul Rogers, Chief Technology Officer, who unloaded 3,000 shares (for $15.40 per share), in early-October. This was his eighth sale this year.
12 West Capital Management also seems confident on NutriSystem Inc. (NASDAQ:NTRI), a $463.7 million market cap provider of a weight management systems. In late-July, the fund initiated a position with 1.52 million shares –or 5.3% of the company’s outstanding stock.
But, why should you follow Mr. Ramin’s picks? Well, his top position, FleetCor Technologies, Inc. (NYSE:FLT), has returned about 18.25% year-to-date, compared to the 6.12% surge in the S&P 500 index.
Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned
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