Becker Drapkin Management disclosed on December 15th that it now has nearly 2.40 million shares in Pixelworks Inc. (PXLW), giving a 13.14% activist stake ownership in the company. According to the filing, Becker Drapkin Management believes PXLW is undervalued and the firm intends to review and invest in the PXLW on a continuing basis. Becker Drapkin Management bought those shares from December 5 to December 14, at between $1.86 and $2.28 per share. Now PXLW is trading at $2.40, and has lost 31% year to date.
There were other hedge funds which invested in PXLW in the third quarter. Stuart Peterson’s Artis Capital Management increased its position by 33% and had 1.15 million shares in the stock. Jim Simons’ Renaissance Technologies slightly cut its position by 2% and retained 963 thousand shares at the end of September.
Becker Drapkin Management “is an employee owned hedge fund sponsor. The firm provides its services to pooled investment vehicles. It invests in the public equity and alternative markets of the United States. Becker Drapkin Management is based in Dallas, Texas,” according to Businessweek.
Pixelworks, Inc. is a designer, developer and marketer of video and pixel processing semiconductors and software for digital video applications. The solutions enable manufacturers of digital display and projection devices, such as large-screen flat panel displays and digital front projectors, to differentiate their products with a high level of video quality, regardless of the content’s source or format. Pixelworks’ design architecture enables the technology to produce image quality in the customer’s products with a range of single-purpose integrated circuits (ICs), to system-on-chip (SoC) ICs that integrate microprocessor, memory and image processing functions. Additionally, the Company provides full solutions, including a software development environment and operating system, which enable the customers to develop and customize their display products, thus reducing their time to market and allowing them to incorporate differentiated features and functions,” according to Google Finance.