Rockwood Holdings Inc (ROC): Daniel S. Och’s OZ Management Trims Exposure to 3.5%

Daniel S. Och’s OZ Management disclosed last week that it had reduced its exposure to Rockwood Holdings, Inc. (NYSE:ROC) by 42%. The fund declared ownership of 2.49 million shares, down from 4.31 million shares held in late-July. This position, worth more than $197 million at current stock prices, accounts for 3.5% of the company’s Common Stock, and makes of OZ Management the third largest hedge fund shareholder of record at the $5.66 billion market cap developer, manufacturer and marketer of value-added specialty chemicals and materials.

Och-Ziff Capital Management

 

The fund has been quite active in Rockwood Holdings, Inc. (NYSE:ROC) lately. As we reported recently, the fund had increased its bet on the company massively in mid-July. OZ Management passed from holding 100 shares of the company by the end of the second quarter, to owning 4.31 million shares. This increase coincided with the company’s Agreement and Plan of Merger with Albemarle Corporation (NYSE:ALB). According to this agreement, Albemarle Corporation (NYSE:ALB) will acquire control of the entire equity interest in Rockwood Holdings, Inc. (NYSE:ROC); each outstanding share of Common Stock will be exchanged for $50.65 in cash and 0.4803 of a share of Albemarle Corporation (NYSE:ALB)’s Common Stock.

However, OZ Management assures that “The Shares reported herein were acquired by the Reporting Persons for investment purposes and not with a view towards changing or influencing control of the Issuer. The Reporting Persons no longer own 5% or more of the Common Stock because 1,800,900 shares of Common Stock receivable upon the exercise of call options held by the Reporting Persons expired on the Effective Date” (SEC).

Rockwood Holdings, Inc. (NYSE:ROC)’s stock currently trades at a high premium, at 80 times the company’s earnings. However, it seems worth it, not only because the company boasts industry-leading margins and returns, while paying out a 2.27% dividend yield, but also because its growth prospects look promising. The company has been increasingly focusing its business on lithium and metal surface treatment, an industry in which it carries some advantage due to its low-cost Chilean production facilities –which have lower production costs than those for ore-based producers in China.

The only funds with larger stakes than Oz Management in Rockwood Holdings, Inc. (NYSE:ROC) are Jean-Marie Eveillard’s First Eagle Investment Management, which last disclosed ownership of 3.57 million shares, worth more than $271 million, and Jeffrey Gates’ Gates Capital Management, which reported a 22% increase in its exposure to the company over the second quarter, to 3.06 million shares.

Daniel S. Och’s Och-Ziff Capital Management (or OZ Management) was founded in 1994 and has since amassed an equity portfolio worth more than $33 billion. This makes it one of the largest hedge funds in the world.

OZ Management uses a multi-strategy, multi-geography approach, and has offices in New York, London, Mumbai, Beijing and Hong Kong. Its equity portfolio is quite diversified but has a slight focus on healthcare, consumer discretionary and information technology stocks. Each of these sectors account for approximately 16% of the fund’s total portfolio

Disclosure: Javier Hasse holds no position in any stocks or funds mentioned.

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 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

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

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!