Clinton Group Cuts Stake in The Wet Seal, Inc. (WTSL)

Clinton Group, managed by Greg Taxin has reduced its position in The Wet Seal, Inc. (NASDAQ:WTSL). A recent filing with the SEC shows that Clinton Group has decreased its activist position in Wet Seal to 6.4 million class A shares from around 6.6 million held earlier. The new stake amasses nearly 7.6% of the class A common stock.

The Wet Seal, Inc. (NASDAQ:WTSL)

According to its recent press release, Wet Seal appointed Deena Varshavskaya, Nancy Lublin, and Adam Rothstein as new independent members of the company’s Board of Directors, expanding the size of the Board from seven to nine members. In the letter attached to the filing, Greg Taxin revealed that Clinton Group supports the three new members that were appointed recently.

Headquartered in Foothill Ranch, California, The Wet Seal, Inc. (NASDAQ:WTSL) is a leading specialty retailer of fashionable and contemporary apparel and accessory items. Since June 2013, the company’s stock price has been steadily decreasing from a high $5.00 per share to a low  $1.89 per share. In 2013 The Wet Seal, Inc. (NASDAQ:WTSL) generated revenues of $469.7 million, 5.1% less than the result for the previous year, and reported annual losses of $0.22 per share. Earnings forecasts show that the company’s losses are expected to widen even further in 2014 to $0.31 per share, but narrow to $0.11 per share in 2015. On average, analysts suggest that investors hold the stock.

Joe Huber‘s Huber Capital Management is also one of the largest shareholders of Wet Seal, owning 3.98 million shares with a total value of $10.86 million. Another fund holding  The Wet Seal, Inc. (NASDAQ:WTSL) is Cliff Asness‘ Aqr Capital Management, which owns 1.17 million shares totaling $3.18 million.

Services industry represents the largest share of Clinton Group’s equity portfolio, with 9.78% of its value invested in 1.6 million shares of NutriSystem Inc. (NASDAQ:NTRI). Moreover, the fund holds significant long positions of 2.54 million shares worth $17.76 million in ValueVision Media Inc (NASDAQ:VVTV) and 1.22 million shares worth $15.07 million in Stillwater Mining Company (NYSE:SWC).

Disclosure: none.

Recommended reading: 

Senator Investment Group Dumps Its Stake In API Technologies Corp (ATNY)

Leon Cooperman Discusses His Favorite Picks: American International Group Inc (AIG), SandRidge Energy Inc. (SD) & Others

QVT Financial Raises Its Stake in China Zenix Auto International Ltd (ZX)

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

7 Free Ways to Advertise Your Business Online

The 18 Best R&B Songs of the 90’s

The 10 Most Dangerous States to be a Cop

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!