Matthew Drapkin and Steven R. Becker‘s hedge fund Becker Drapkin Management disclosed, in a new SEC filing, boosting its exposure to Comverse Inc (NASDAQ:CNSI). The fund reported holding around 1.4 million shares of the company, up from 93,300 shares disclosed in its latest 13F. The position held by Becker Drapkin is activist by nature, amassing 6.1% of the company’s common stock.
The filing also revealed that the fund acquired the stock because it considers it undervalued. Becker Drapkin plan to enter into discussions with the company regarding the increase of the stock value of the company. The negotiations will involve Comverse Inc (NASDAQ:CNSI)’s business, assets, strategy, among other things that can help to increase the shareholder value of Comverse.
The stock of Comverse Inc (NASDAQ:CNSI) gained 23% since the beginning of the year. The company recently has received the Bronze Stevie medal for its Comverse Data Management and Monetization Policy Manager Extended with Analytics. The prize has been awarded in the Best New Product or Service of the Year category at the 10th Annual International Business AwardsSM, the company said in a statement.
At the end of the third quarter, Kingstown Capital Management, run by Michael Blitzer, disclosed a significant position in Comverse Inc (NASDAQ:CNSI). The holding amasses 1.0 million shares, with a reported value of $31.6 million. At the same time, Michael Doheny’s Freshford Capital Management and Steven Cohen’s Sac Capital Advisors reported ownership of 840,300 shares, and 584,100 shares respectively. The value of Freshford’s stake amounts to over $26.8 million, while SAC’s holding is worth some $18.7 million.
The largest position in Becker Drapkin’s equity portfolio, according to its latest 13F, is a $43.8 million stake in Tuesday Morning Corporation (NASDAQ:TUES), the fund holding around 2.9 million shares of the company. In Pacer International, Inc. (NASDAQ:PACR), Becker Drapkin holds 3.1 million shares, worth $19.3 million; In Pixelworks, Inc. (NASDAQ:PXLW) the value of the holding amounts to $11.4 million, it containing over 2.8 million shares.
Earlier in November, Becker Drapkin disclosed trimming its position in Pixelworks to around 2.5 million shares.