Altai Capital Retraces Its Steps In Wausau Paper Corp. (WPP), Should Other Investors Do The Same?

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What does the smart money think about Wausau Paper Corp. (NYSE:WPP)?

Heading into the second trimester, a total of ten hedge funds tracked by Insider Monkey held long positions in this stock, a drop of 23% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings substantially.

Of the funds tracked by Insider Monkey, Jeffrey Smith‘s Starboard Value LP had the largest position in Wausau Paper Corp. (NYSE:WPP), worth close to $71.5 million, amounting to 1.5% of its total 13F portfolio. The second-most bullish hedge fund manager is LionEye Capital Management, led by Stephen V. Raneri, holding a $36.8 million position; 1.5% of its 13F portfolio is allocated to the company. Some other hedge funds that hold long positions encompass Phill Gross and Robert Atchinson’s Adage Capital Management and Stephen Loukas, David A. Lorber, and Zachary George’s FrontFour Capital Group.

Since Wausau Paper Corp. (NYSE:WPP) has witnessed a declination in interest from the entirety of the hedge funds we track, we can see that there was a specific group of hedgies that elected to cut their positions entirely last quarter. At the top of the heap, Israel Englander’s Millennium Management dumped the biggest position of the 700 funds watched by Insider Monkey, worth $695,000 in stock. Ken Gray and Steve Walsh’s fund, Bryn Mawr Capital, also cut its stake, worth $310,000 worth. These transactions are important to note, as aggregate hedge fund interest fell by three funds last quarter.

Given the weak growth figures of the paper industry, a high valuation of the company in terms of earnings multiple, and dwindling hedge fund interest, Wausau Paper Corp. (NYSE:WPP) is not a buy at the current price level.

Disclosure: None

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