Altai Capital Trims Stake in Emulex Corporation (ELX)

Managed by Rishi Bajaj, Toby Symonds, and Steve TesoriereAltai Capital recently trimmed its activist stake in Emulex Corporation (NYSE:ELX). A recent filing with the U.S. Securities and Exchange Commission shows that the stake has been reduced to 3.70 million shares of common stock, which represent 4.58% of the company’s stock, down from the previously held 4.77 million.

Emulex Corporation (NYSE:ELX)

Emulex Corporation (NYSE:ELX) is a provider of network connectivity hardware and software solutions. Examples of its products include Converged Network Adapters, Host Bus Adapters, embedded storage bridges, switches, and routers. On August 25, 2000 the company lost $2.20 billion in market capitalization due to a fake press release hoax, but the price rebounded later, the same day. Emulex lost $83.61 million in 2011, but significantly shrank its losses in the following years. In 2013 Emulex acquired London Stock Exchange listed company Endace Ltd. The same year, Emulex generated revenues of $478.57 million with respective net losses of $5.21 million. Currently trading at a Forward P/e of 9.xx, the company is expected to earn $0.82 per share in the current year. On average, analysts strongly suggest that investors buy the stock. Currently trading at around $7.30 and having a beta of 2.02, the stock has been moderately volatile in the past year.

Paul Singer‘s Elliott Management and Stephen V. Raneri‘s Lioneye Capital Management are two other funds that hold considerable stakes in Emulex Corporation (NYSE:ELX). The former owns 7.52 million of the company’s shares outstanding with an equivalent position value of $53.84 million, while the latter holds 2.97 million shares worth $21.25 million.

Recently, Altai Capital increased its long position in Vocus, Inc. (NASDAQ:VOCS) to 2.5 million shares, up by a little under 1 million shares. In early February, the fund also revealed an increased stake of 4.83 million shares in RealD (NYSE:RLD), holding 9.80% of the company’s common stock. Altai Capital has a very concentrated equity portfolio, with 80% of its value invested in the Technology sector. Sunedison Inc (NYSE:SUNE) amounts to almost 65% of the fund’s equity portfolio, with a respective investment of $240.53 million in 18.43 million of the company’s shares.

Disclosure: none

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