Two Funds Have Mixed Opinions on SunOpta

Greg Boland and Jason Karp (pictured) have different views on SunOpta, Inc. (USA) (NASDAQ:STKL). According to a recent filing with the Securities and Exchange Commission, Boland’s West Face Capital has disclosed an increase in its holding to 8.47 million shares, from the 4.17 million shares reported previously. This move gives Boland control over approximately 9.9% of SunOpta’s common stock. Karp, on the other hand, has recently disposed of 50,000 shares at prices varying between $5.00 and $5.24 apiece, as disclosed in a new Form 4 filing. His fund, Tourbillon Capital Partners, currently holds 8.51 million shares, which represent roughly 9.98% of the company’s outstanding stock.

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Tourbillon Capital Partners was launched by Jason Karp in 2013 with $250 million in assets, a number Karp has managed to multiply quickly. According to Tourbillon Capital’s latest 13F filing, the fund’s equity portfolio carries a value in excess of $4.6 billion, which serves as testament to Karp’s prowess. He has spread the funds across a number of sectors, with 38% concentrated in consumer discretionary stocks, while 21% of the portfolio is occupied by technology companies. Although Karp has decreased his holding of Expedia Inc (NASDAQ:EXPE) by 9% during the second quarter to 3.13 million shares, the stock continues to be Tourbillon Capital Partners’ biggest equity position. Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) seems to have replaced Expedia as Karp’s favorite travel services company, with Tourbillon reporting an 88% increase in its holding to exactly 2.9 million shares in its latest 13F filing. Karp is also betting big on TV giant DISH Network Corp (NASDAQ:DISH) and has boosted his stake to 2.47 million shares during the second quarter.

A master of finding profitable investment opportunities in severely distressed companies, Greg Boland founded West Face Capital in 1998. Out of his office in downtown Toronto, Boland manages a number of fund that share more than $2.5 billion worth of assets between them. His equity portfolio, however, carries an estimated value of $339 million, and comprises just 5 stocks. Boland’s top bet is PHI Inc. (NASDAQ:PHIIK), a provider of helicopter transportation services. During the second quarter, he reduced West Face Capital holding of the stock by 13% to 4.37 million shares. Gran Tierra Energy Inc. (NYSEMKT:GTE) is one stock Boland is very bullish on, having increased his stake by 147% to 14.3 million shares as of the end of June. West Face Capital has also reported a 24% increase in its ownership of SunCoke Energy Inc (NYSE:SXC) to roughly 3.13 million shares in its latest 13F filing.

A provider of organic and specialty food products, SunOpta, Inc. (USA) (NASDAQ:STKL) has seen its stock crash amid the recent market sell-off and is now at $4.85 per share, 59% down year-to-date. The company posted revenues of $307 million, down 6.11% year-over-year, and earnings of $0.05 per share for the three months ending July 4, 2015. Wall Street expects revenues to decline slightly during the current quarter, projecting $305 million in revenues and earnings of $0.07 per share. Analysts at Citigroup and DA Davidson recommend SunOpta as a Buy and have attached an average target price of $12.75.

Approximately 23.8% of SunOpta, Inc. (USA) (NASDAQ:STKL)’s common stock is held by hedge funds we follow, with the total value of their holding having increased by 6.69% to $173 million during the second quarter of 2015. The number of funds reporting long positions at the end of the quarter has, however, decreased to 15 from 16 at the end of March. Chuck Royce of Royce & Associates is optimistic about the prospects of SunOpta and has increased his investment by 15% to 3.14 million shares. Mariko Gordon‘s Daruma Asset Management has reported ownership of 5.11 million shares in its latest 13F filing, up by 2% over the quarter. Steven Boyd, the manager of Armistice Capital, has also joined the party, having built a position that amasses 424,000 shares of SunOpta between April and June.

Disclosure: none.