Glenn Welling’s Engaged Capital is Fond of These Stocks

Glenn W. Welling founded California based Engaged Capital in February 2012. The fund focuses on small and mid cap stocks that are undervalued and possess premium assets. It creates its portfolio employing fundamental analysis. Mr. Welling earned his Bachelors degree in Economics from The Wharton School of Business at the University of Pennsylvania. Mr. Welling has worked with financial services firms like Relational Investors, Credit Suisse and HOLT Value Associates L.P, among others.

Volcano Corporation (NASDAQ:VOLC)
In its latest 13F, Engaged Capital has disclosed its holdings as of the end of the fourth quarter of 2013. The total value of the fund’s equity portfolio is approximately $140.7 million.

First on the list is Volcano Corporation (NASDAQ:VOLC), a $1.2 billion market cap company, in which the fund owns 2.4 million shares, with a reported value of $51.8 million. The stock has a beta of -0.01. This week, the company released its guidance for the first quarter of 2014, with earnings per share in the range of $0.11 to $0.12 and revenues between $94 million and $95 million (versus consensus estimates of $99.5 million).

Next is AeroVironment, Inc (NASDAQ:AVAV). The fund reported holding approximately 580,800 shares, worth $16.9 million. The company operates in two segments, Unmanned Aircraft Systems (UAS) and Efficient Energy Systems (EES). It has a market cap of $709.4 million and is headquartered in California. Amy Minella’s Cardinal Capital also holds approximately 231,400 shares of the company, followed closely by Chuck Royce’s Royce & Associates, which owns 217,800 shares.

On the third spot is Rentech, Inc (NASDAQ:RTK), in which the fund disclosed a $14.9 million stake, or approximately 8.5 million shares. The provider of clean energy has a market cap of $462.4 million. Other stakeholders include Peter S. Park’s Park West Asset Management, which owns around 18.4 million shares, followed by Ariel Investments, led by John W. Rogers, which holds approximately 16.5 million shares.

Fourth on the list is the specialty retailer, Abercrombie & Fitch Co (NYSE:ANF), in which the fund holds 444,100 shares. The value of the current holding is equivalent to $14.6 million. Abercrombie & Fitch Co (NYSE:ANF) sports a P/E  23.7 and a beta of 1.49. It has a market cap of 3.0 billion. Susquehanna raised its target price on Abercrombie to $49.0 from $44.0 yesterday. However, Citigroup upholds its neutral rating on the stock, according to media reports issued recently.

Texas based Rovi Corporation (NASDAQ:ROVI) occupied the fifth largest position. Engaged Capital holds approximately 608,700 shares, which is equivalent to $11.2 million at the end of last year. Among the largest shareholders of Rovi Corporation (NASDAQ:ROVI) are Seth Klarman’s Baupost Group, which holds 2.2 million shares, followed closely by Orbis Investment Management, led by William B. Gray, which owns approximately 2.2 million shares.

Disclosure:none

Recommended Reading:

Douglas Dossey and Arthur Young’s Tensile Capital’s Top Stock Picks

Free Stock Research Report: Rite Aid Corp. (RAD)

Skytop Capital is Betting on Services and Financials

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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 World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!