Senator Investment Group Takes a Massive Stake in Trade Street Residential Inc (TSRE)

Senator Investment Group, a fund managed by Douglas Silverman and Alexander Klabin, has initiated a position in Trade Street Residential Inc (NASDAQ:TSRE). According to a filing with the Securities and Exchange Commission, Senator Investment Group now holds 9.32 million shares of Trade Street, which are equal to 25.6% of the common stock.

Trade Street Residential Inc (NASDAQ:TSRE)

The position held by Senator is activist by nature, so we might expect some actions from the investor. As a first step, according to an agreement between the Senator Investment Group and Trade Street Residential Inc (NASDAQ:TSRE), the shareholder is allowed to nominate two representatives to be elected to the company board. The fund had nominated Michael Simanovsky, who a couple of days ago joined the board.

The fund purchased the shares under a private placement worth $50 million, under the terms of which, Senator agreed to purchase the securities under the price of $6.33 apiece, and also to acquire all shares that had not been bought in another rights offering. According to a press release, the offering involved the recapitalisation of the company by $150 million, and involved offering 15.80 million common shares granted to the existing stockholders. Also, the CEO and President of Trade Street, Michael Baumann and David Levin, the Vice Chairman agreed to acquire another $1.8 million worth of common stock in the aggregate.

Trade Street Residential Inc (NASDAQ:TSRE) is an owner and operator of apartment properties in the U.S. The company has recently completed the purchase of two new communities with over 600 unites, with a price of $81.0 million, expanding its primary markets in the Southeast of the country, according to a statement.

The stock of the company has been gaining ground and since January 2013, jumped by a whooping 7,000%, although it currently trades at around $8.19, which is way below its 52-week high of $20 per share.

J. Alan Reid, Jr.’s Forward Management is another shareholder of Trade Street Residential Inc (NASDAQ:TSRE), which at the end of September held around 1.14 million shares. Some other hedge funds from our database hold less significant stakes in the company.

Disclosure: none

Recommended Reading:

Why Jim Cramer is Listening to This Fund Manager

Hedge Fund News: Paul Singer, David Einhorn & Stephen Mandel

Prem Watsa is the Third-Largest EXCO Resources Inc (XCO) Shareholder; Raises Stake to 6.4% in the Rights Offering

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 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

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

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!