Coliseum Capital is an activist hedge fund founded by Christopher Shackelton and Adam Gray. Christopher Shackelton previously worked as an analyst at Watershed Asset Management between 2003 and 2005.
Below we compiled a list of top 10 positions in Coliseum’s portfolio at the end of September.
LHC Group Inc (LHCG): LHC Group provides post-acute health care services to patients through its home nursing agencies, hospices and long-term acute care hospitals. The company reported $2.08 earnings per share for the third quarter of 2011, missing the Thomson Reuters consensus estimate of $0.56 by $2.64. The company’s quarterly revenue was also down 7.4% from the same quarter last year. Coliseum had $25.8 million invested in LHCG and it returned -18.58% since the end of September. It has a market cap of $255.74M. Chuck Royce had $44 million invested in LHCG as of June 30, 2011.
Cash Store Financial Services Inc (CSFS): The Cash Store Financial Services Inc is the broker of short-term advances and provider of other financial services in Canada. The company is going to hold its management conference call and webcast with shareholders, analysts and institutional investors to discuss its fourth quarter results for the three and twelve months ended September 30, 2011 on November 17, 2011. Coliseum had $19.0 million invested in CSFS and it returned 3.31% since the end of September. It has a market cap of $152.07M. Bernard Horn’s Polaris Capital Management invested $17.4 million in CSFS.
Benihana Inc (BNHNA): Benihana Inc. is an operator of teppanyaki-style restaurants. The company posted total sales of $75.8 million for the most recent quarter, compared with $71.8 million for the same period a year ago. Coliseum had $17.2 million invested in BNHNA and it returned 5.34% since the end of September. It has a market cap of $153.94M and a P/E ratio of 319.44. Chuck Royce also had $2.4 million invested in the stock.
Mac-Gray Corp (TUC): Mac-Gray is a laundry facilities management contractor in the United States. The company reported EPS of $0.05 for the third quarter of 2011, $0.07 worse than the analyst estimate of $0.12. Revenue for the quarter was $78.5 million, compared with the consensus estimate of $80 million. Coliseum had $9.4 million invested in TUC and it lost 1.24% since the end of September. It has a market cap of $184.80M and a P/E ratio of 71.92.
Wet Seal Inc (WTSLA): The Wet Seal, Inc. specialty retailer operating stores selling apparel and accessory items designed for female customers aged 13 to 35 years old. The company reported weaker than expected October sales. Revenue at stores open at least a year dropped 9.7% in October, falling short of analysts’ expectations for a 1% decline. Wet Seal is going to announce its third quarter financial results on November 17. Coliseum had $8.6 million invested in WTSLA and it lost 31.03% since the end of September. It has a market cap of $289.10M and a P/E ratio of 17.93. Lee Ainslie had $29 million invested in WTSLA.