In three separate filings with the Securities and Exchange Commission, Eric Semler’s TCS Capital Management, Michael Price’s MFP Investors and Daniel Lewis’ Orange Capital disclosed their latest moves regarding Angie’s List Inc (NASDAQ:ANGI), S&W Seed Company (NASDAQ:SANW), and Bellatrix Exploration Ltd (NYSE:BXE), respectively. Eric Semler’s TCS Capital, in an amended filing, disclosed a letter it sent to Angie’s List’s Board of Directors and Chairman John H. Chuang, urging the company to pursue a merger. In another filing, MFP Investors revealed upping its position in S&W Seed to 2.93 million shares compared to 1.29 million shares the investor held at the end of the third quarter. In the third filing, Orange Capital reported that its standstill agreement with Bellatrix Exploration Ltd (NYSE:BXE) expired on Nov. 30.
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In a letter to Angie’s List Inc (NASDAQ:ANGI)’s board, Mr. Semler of TCS Capital states that the company should consider a merger with IAC/InterActiveCorp (NASDAQ:IACI)’s HomeAdvisor, which the investor believes would lead the company’s shares to trade at $20 a share or higher. He wants the board to immediately hire a financial advisor to pursue strategic alternatives, including a public offer from IAC. Further, Mr. Semler states that he rejected an offer for a seat on Angie’s List’s board, noting that he would rather “avoid the onerous standstill provisions that the board demanded for his appointment.”
According to the filing, TCS Capital holds 6.25 million shares of Angie’s List, equal to 10.7% of the company’s common stock. The stake represents an increase from the 5.33 million shares the fund held previously. During the third quarter, the fund boosted its position in Angie’s List by around 70%. Angie’s List is a consumer review company, which recently rejected a $512 million purchase offer from IAC. The company’s stock has increased by an impressive 73.52% year-to-date. Another investor that loves Angie’s List is Ken Griffin’s Citadel Investment Group, which held 739,505 shares as of the end of the third quarter.
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On the next page, we will talk about the latest moves made by MFP Investors and Orange Capital.
In a separate filing with the SEC, MFP Investors reported increasing its stake in S&W Seed Company (NASDAQ:SANW) to 2.93 million shares, representing 19.99% of the company’s common stock. MFP Investors is a private investment fund controlled by Michael F. Price that focuses on long-term, value investment opportunities. Recently, S&W Seed Company (NASDAQ:SANW) announced that it closed a non-brokered private placement of its common stock with MFP Investors for proceeds of about $4.9 million. The company issued 1.18 million common shares at $4.15 per share in the private placement. S&W Seed Company (NASDAQ:SANW) is a global agricultural company, headquartered in Fresno, California. The company currently plans to raise up to about $10.4 million through the distribution of subscription rights and the exercise thereof, the full rights of which will entitle security holders to purchase shares of common stock at $4.15 per share. Other large shareholders of S&W Seed among those we track include Mark Coe’s Coe Capital Management and Ken Grossman and Glen Schneider’s SG Capital Management, holding 172,255 shares and 130,008 shares, respectively, as of the end of the third quarter.
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In new filing with the SEC, Orange Capital reported that its standstill agreement with Bellatrix Exploration Ltd (NYSE:BXE) expired on November 30. The agreement was signed by the parties in December 2014. The filing showed that Orange Capital holds 32.73 million Bellatrix Exploration shares, which represents 17.0% of the company’s common shares. Orange Capital states in the filing that it will continue to work collaboratively with Bellatrix Exploration Ltd (NYSE:BXE)’s management and the other board members, with the shared goal of maximizing long-term value for all shareholders.
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Bellatrix Exploration Ltd (NYSE:BXE) is a $305.2-million oil and gas company operating in Western Canada’s Sedimentary Basin. A total of ten hedge funds in our database were holding Bellatrix Exploration Ltd in their portfolios at the end of September, compared to 12 at the end of the second quarter. For the three months ended September 30, the company posted a loss of $12.6 million, compared to a profit of $29.62 million a year ago. Total revenue fell by 40% to $82.1 million. Aside from Orange Capital, Baupost Group, led by Seth Klarman, also sees value in Bellatrix Exploration, holding 23.99 million shares at the end of the third quarter.
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