Corvex Capital Is Going Long Signet Jewelers Ltd. (SIG)

Keith Meister‘s Corvex Capital has disclosed a new position in Signet Jewelers Ltd. (NYSE:SIG). Carl Icahn‘s protege has purchased 6.26 million shares of the specialty retail jeweler, which is 7.8% of the company’s outstanding common stock.

Corvex Capital took the position in the stock due to the belief that “the Shares are undervalued and are an attractive investment,” according to the SEC filing. Further, the company declared its intention to continue to engage in discussion with management and members of the board regarding business and strategies.

Signet Jewelers Ltd. (NYSE:SIG)

More specifically, the filing revealed what Corvex wants to talk discuss with Signet Jewelers Ltd. (NYSE:SIG) going forward, including options for increasing shareholder value and “leveraging the Issuer’s credit receivables, optimizing capital structure, accelerating M&A and/or return of capital to shareholders.”

Other funds who are long Signet Jewelers Ltd. (NYSE:SIG) include, Crispin Odey‘s Odey Capital Management, which owns 4.3 million shares, Robert Joseph Caruso‘s Select Equity Group, which is long 3.2 million shares, and John Armitage‘s Egerton Capital Limited, which owns 1.3 million shares.

In addition to the shares, Corex Capital has hedged its position in Signed Jewelers with a number of options. According to the filing, Corvex purchased an an call options referencing an aggregate of 1.6 million shares, which have an exercise price of $51.00 per share and expire on February 27, 2015. The fund also sold OTC market European-style put options in an aggregate amount of 3.6 million shares at an exercise price of $53, which expired on November 28, 2014. Finally, Mr. Meister’s fund sold put options related to an aggregate of 1.6 million shares at an ex. price of $51 per share, expiring on February 27, 2015.

Signet Jewelers Ltd. (NYSE:SIG) is a specialty retail jeweler that primarily does business in the United States and United Kingdom. The Company retails jewelry, watches and associated services, and operations are managed as two geographical operating divisions: the US division and the UK division. Signet’s stores trade nationally in mall and off-mall locations as Kay Jewelers, and regionally under a number of mall-based brands. Destination superstores trade nationwide as Jared The Galleria Of Jewelry.

Disclosure: none

Recommended Reading:

Pine River Capital Management Cuts Holding in PHH Corporation (PHH)

Wallace R. Weitz & Co. Upps its Stakes in XO Group Inc (XOXO), Redwood Trust, Inc. (RWT), and Intelligent Systems Corporation (INS)

3 Stocks That Both Warren Buffett and Insiders Like (and a Bonus Track)

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

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

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!