Glenhill Advisors Discloses Large New Stake in Pier 1 Imports Inc (PIR); Check Out the Fund’s Other Top New Picks

The second most valuable new position in Glenhill’s portfolio during the fourth quarter was a 1.86 million share stake in Dominion Diamond Corp (USA) (NYSE:HWD) (formerly Harry Winston Diamond Corp.) valued at $33.47 million. The Canadian diamond mining company owns an 80% stake in the Ekati Diamond Mine and a 40% stake in the Diavik Diamond Mine, both of which are located in Canada’s Northwest Territories. The two mines produced an estimated seven million carats in 2014, with each of them ranking among the top 20 diamond mines in the world in terms of production. Futhermore, Dominion Diamond Corp (USA) (NYSE:HWD) has plans to expand the Ekati mine in the summer of 2016 with a new pit that will extend its operations by another ten years. That pit will open in 2019 just as the reserves at the mine’s current operation are expected to run dry.

Dominion Diamond Corp (USA) (NYSE:HWD) changed its name after the sale of its Harry Winston luxury retail division to The Swatch Group in 2013 for $750 million, plus the assumption of up to $250 million in pro forma net debt. Blue Harbour Group was also the largest shareholder of this company among the funds we track, owning 3.33 million shares at the end of 2014. The stock had a very strong fourth quarter, during which it gained nearly 26%.

Lastly, Glenhill has opened a new position in Belmond Ltd (NYSE:BEL), previously known as Orient Express Hotels (formerly traded under the ticker symbol OEH). The new stake contains 1.37 million share was valued at $16.92 million at the end of 2014 and became the second largest position in the company among funds we track, with Royce & Associates’ 1.90 million share holding leading the way.

Belmond, which changed its name to align with its luxury brand, operates 45 different hotels and travel adventures for clients, which includes safaris, river cruises, and luxury tourist trains. With the travel sector expected to improve in 2015 and throughout the next decade, it looks like a good time to enter a stock that has been stagnant since the financial crisis of 2008. A 2014 study conducted by Oxford Economics predicted 5.4% growth per annum over the next decade for the industry, driven by a huge increase in Chinese tourists.

Disclosure: None