Town Sports International Holdings, Inc. (CLUB): HG Vora and PW Partners Atlas Fund Nominate Six Director Candidates

So far, HG Vora and PW Partners’ plans to replace the board might be successful as Town Sports International Holdings, Inc. (NASDAQ:CLUB) has seen its stock losing more than 54% over the last 52 weeks. The decline came on the back of a decline in revenues and earnings as the company posted revenues of around $113 million for the third quarter of 2014, down from $117 million a year earlier and turned to a net loss of $0.04 per share, from a profit of $0.11 per share. In addition, the company’s EBITDA dropped to $15 million, from $22 million. In this way, the stock underperformed the leisure industry that gained 11% over the last year.

Moreover, as the Town Sports International Holdings, Inc. (NASDAQ:CLUB) has been losing ground, it has seen some investors moving away from the stock. As our data show, at the end of September 10 funds, among those that we track, reported long positions in the company, down from 15 funds in the previous quarter. Aside from HG Vora, Thomas Steyer’s Farallon Capital owns a significant position in Town Sports International, which amasses 4.06 million shares as of the end of the third quarter, while Jim Simons’ Renaissance Technologies disclosed holding 838,000 shares in its latest 13F filing. However, while the stake in the company amasses almost 3% of HG Vora’s equity portfolio, Farallon and Renaissance commited less than 1% of their 13F portfolios to the investment.

Disclosure: none