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.

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

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