Shares in Diamond Foods $DMND Up on Rumors of Einhorn Involvement

Diamond Foods, Inc. (DMND) rose 7.2% yesterday “after CNBC reported that hedge fund manager David Einhorn may have taken a stake in the snack maker,” reports Bloomberg. So far, no one is confirming or denying the speculation.

“Diamond is undergoing an internal and U.S. Securities and Exchange Commission investigation into whether it violated accounting rules,” writes Bloomberg. “Last month, the company said the internal probe would delay its purchase of Pringles potato chips from Procter & Gamble Co. (PG) in a deal valued at $2.35 billion.” David Einhorn

The investigation is expected to conclude quickly, but the fact of it has led some analysts to call the idea that Einhorn would invest in DMND with such an investigation going on is “counterintuitive.”

On November 30, Wellington Management Company filed a 13G with the SEC stating that it had bought just under 3 million shares, or a roughly 13.60% stake. According to its website, it is an investment management provider. One of Wellington’s primary functions is “to identify and evaluate appropriate investment solutions and strategies for our common clients.”

David Einhorn, the founder and manager of Greenlight Capital, is well-known as an activist investor, and is no stranger to providing capital in exchange for a stake of a company. He was looking for an arrangement like that when he offered to give the New York Mets a $200 million loan in exchange for a minority stake of the team. Under the proposed terms, the Mets would have 5 years to repay the loan and, if they failed, would be required to sell a majority stake to Einhorn under the terms of the agreement. The deal ultimately fell through, but maybe that means that Einhorn could be looking for another, similar investment opportunity.

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

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

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!