As major funds continue to file the Schedule 13F forms for the third quarter of 2014, disclosing their long equity positions as of September 30, I came across Ken Grossman And Glen Schneider’s SG Capital Management’s. The fund disclosed an equity portfolio worth more than $307 million, down from roughly $362 million for the second quarter, with a focus on information technology stock (42.7% of its portfolio). After adding 38 new stocks to its holdings, and selling out of 37 of its preexisting positions, SG Capital’s top bets were placed on ViaSat, Inc. (NASDAQ:VSAT), Mobile Mini Inc (NASDAQ:MINI) and Extreme Networks, Inc (NASDAQ:EXTR), all of them small-cap companies (although the firm has a penchant for small-caps, these are completely different from SG Capital’s second quarter picks). So, let’s take a closer look at these positions in order to elucidate if these companies could stand as attractive investment options.
SG Capital Management is a Chicago, Illinois-based employee-owned investment manager founded in 2002. It manages client focused equity portfolios, and occasionally launches and manages hedge funds for its clients.
ViaSat, Inc. (NASDAQ:VSAT), a $2.79 billion market cap provider of high-speed fixed and mobile broadband services, advanced satellite and other wireless networks and secure networking systems, products and services, came in first in this quarter’s list. The stake (385,340 shares, worth more than $21 million) was initiated over the third quarter and comprises more than 6.9% of the fund’s equity portfolio.
Even more bullish on ViaSat, Inc. (NASDAQ:VSAT) seems Seth Klarman’s Baupost Group. The fund last disclosed, by the end of the second quarter, ownership of 11.53 million shares of the company’s Common Stock. In fact, ViaSat was amongst Mr. Klarman’s top picks for the second quarter.
Second in line is Mobile Mini Inc (NASDAQ:MINI), a $1.99 billion market cap portable storage solutions with a total portable storage and office fleet. This is another newcomer to SG Capital’s equity portfolio. Over the third quarter, the fund acquired 452,163 shares of Common Stock, worth about $15.8 million.
Opposite is the case of Ken Fisher’s Fisher Asset Management, which trimmed its exposure to Mobile Mini Inc (NASDAQ:MINI) by 3% during the third quarter, and now owns 214,365 shares of Common Stock.
Finally, there’s Extreme Networks, Inc (NASDAQ:EXTR), a $368.7 million market cap provider of network infrastructure equipment and services for enterprises, data centers, and service providers. Following a 16% increase in its wage, SG Capital owns 2.87 million shares of Common Stock, worth about $13.77 million. This makes it one of the largest institutional shareholders in the company.
Other major institutions betting on Extreme Networks, Inc (NASDAQ:EXTR) are Chuck Royce’s Royce & Associates and Jim Simons’ Renaissance Technologies. These funds acknowledged holding, by the end of the second quarter, 3.98 million shares and 3.17 million shares, respectively.
Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned
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