Three Hedge Fund Moves Ahead Of Holidays

In a separate 13D filing, Sandell Asset Management, founded by Tom Sandell, reported owning 4.01 million shares (including 375,536 shares referenced in cash-settled equity swaps) in Viavi Solutions Inc. (NASDAQ:VIAV), representing 1.7% of the company’s outstanding common stock. As a result, Tom Sandell’s investment firm ceased to be an owner of more than 5% of outstanding stock in Viavi Solutions. This compares with the 12.00 million-share stake (which included 6.00 million shares underlying stock options and 375,526 shares referenced in cash-settled equity swaps) revealed via another 13D filing in early October. At the end of September, the network-testing equipment company and the activist hedge fund firm sealed a settlement agreement, under which Donald Colvin and Tor Braham were appointed to the company’s Board of Directors. At the same time, the Board’s Corporate Development Committee, which is comprised of four directors (the freshly-appointed Directors are two of them), was set to review strategies that could create value, which include a review of the company’s “business, financial position, capital allocation, investment and business strategies, and strategies to maximize the value of the company’s deferred tax assets”.  Under the aforementioned standstill pact, Viavi Solutions Inc. (NASDAQ:VIAV) was also expected to immediately implement an accelerated share repurchase program and change the equity incentive program. In the meantime, 19 smart money investors from our database had stakes in the company on September 30, accumulating 18.20% of its outstanding shares. George Soros’ Soros Fund Management reported owning 10.47 million shares in Viavi Solutions Inc. (NASDAQ:VIAV) via its latest 13F.

As stated by a Schedule 13G filing, Kingdom Ridge Capital, managed by Christopher Zepf and Brian Thonn, owns nearly 2.55 million shares of Immersion Corporation (NASDAQ:IMMR), representing 9.00% of its outstanding stock. Kingdom Ridge reported ownership of 1.42 million shares in the company through the latest round of 13Fs, along with call options underlying an additional 690,000 shares. The intellectual property and software licensing company has seen its shares climb by 20% this year even though the stock has embarked on a sharp downtrend since early December. The company primarily focuses on creating, designing and licensing patented haptic innovations and software that enable people “to use their sense of touch more fully when operating a wide variety of digital devices”, having over 2,000 issued and pending patents in the nation and other countries. Immersion Corporation (NASDAQ:IMMR)’s total revenue for the third quarter increased by 19% year-on-year to $14.31 million, thanks to higher revenues from its mobility and gaming licenses. The company also raised its 2015 revenue guidance to the range of $59-to-$61 million, which denotes an increase of 11%-to-15% year-over-year. Meanwhile, the company’s net income for the quarter added up to $184,000, increasing from $1.1 million reported a year ago. The number of hedge funds with positions in the company declined to 21 from 22 during the third quarter, while the value of their investments shrank to $131.94 million from $144.75 million. Richard Mashaal’s Rima Senvest Management cut its position in Immersion Corporation (NASDAQ:IMMR) by 2% during the July-to-September period to nearly 4.45 million shares.

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