FrontFour Capital Shorting U.S Energy And Buying Canadian; Explains Why In Interview

Let’s briefly run through FrontFour’s top U.S equity positions as of June 30 to get a sense for the companies it finds attractive south of the border. OM Group, Inc. (NYSE:OMG) remained its top long position, consisting of over 1.45 million shares valued at $48.80 million. The position ended up being another one that resulted in an acquisition shortly after the fund was putting pressure on the company to institute change and improve its performance, as it was bought by Apollo Management in late May.

Innophos Holdings, Inc. (NASDAQ:IPHS) remained in the second position, with FrontFour owning over 720,000 shares, up by 28% during the second quarter. Ferro Corporation (NYSE:FOE) made a big jump to third, despite the holding remaining unchanged at 2.04 million shares, as a strong share price performance pushed the value of the holding up by more than 33% to $34.26 million. ClubCorp Holdings Inc (NYSE:MYCC) landed in fourth place, while Diamond Resorts International Inc (NYSE:DRII) was fifth, with FrontFour’s portfolio containing 1.40 million shares and just under 1.0 million shares of the two stocks respectively.

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