Becker Drapkin Management Offloads Nearly 28% Of Its Stake In EMCORE Corporation (EMKR)

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Becker Drapkin Management, founded by Matthew Drapkin and Steven R. Becker, has recently disclosed in a 13D filing with the Securities and Exchange Commission that it has unloaded 883,611 shares of EMCORE Corporation (NASDAQ:EMKR). Following the transactions, the hedge fund currently owns 2.31 million shares in the provider of semiconductor-based products, translating into a 9.0% ownership stake. Becker Drapkin has been holding a position in EMCORE since the end of 2013, when the fund indicated in a 13D filing that the shares of the company were undervalued and represented an attractive investment opportunity at the time.

Matthew Drapkin - Becker Drapkin Management

Becker Drapkin Management is a value-oriented activist hedge fund established by Matthew Drapkin and Steven R. Becker in 2004. The investment firm mainly invests in deep value stocks of small-cap companies, with market capitalizations normally below $500 million. Becker Drapkin Management, formerly known as SRB Management LP, primarily employs fundamental analysis when seeking investment opportunities in the U.S. equity markets. The Texas-based hedge fund has diversified its holdings among the following sectors: 59% in the information technology sector, 16% in the utilities and telecommunications sector, and 12% and 7% in the consumer discretionary and industrials sectors, respectively. According to its latest 13F filing, Becker Drapkin Management oversees a public equity portfolio worth $179.69 million as of March 31, 2015. We recently profiled Becker Drapkin’s top picks, which included EMCORE, in addition to Par Petroleum Corporation (NYSEMKT:PARR), and Comverse Inc (NASDAQ:CNSI).

Follow Matthew Drapkin And Steven R. Becker's Becker Drapkin Management

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EMCORE Corporation (NASDAQ:EMKR) is a leading provider of compound semiconductor-based products for the broadband, fiber optics, space, and solar power markets. The company mainly operates in two segments: Fiber Optics and Photovoltaics. The shares of EMCORE have gained over 37% since the beginning of the current year, so it is no surprise that Becker Drapkin Management decided to take some profits off the table. To be more detailed, the activist hedge fund acquired a 1.90 million-share stake during the last months of 2013 at prices in the range of $4.29 to $4.75. Meanwhile, the firm has recently sold the aforementioned 883,611 share-stake in the company at prices in the range of $6.55-$7.40, so Becker Drapkin enjoyed returns of at least 38% on the transaction.

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