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.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!