Billionaire Mario Gabelli‘s GAMCO Investors has initiated a new position in Silicon Graphics International Corp (NASDAQ:SGI) and together with its affiliates it has acquired 2.36 million common shares, which amass 6.51% of the Silicon Graphics International’s outstanding stock, according to a new 13D filing with the US SEC. Out of the aggregate amount GAMCO solely owns 171,600 shares, which represent 0.47% of the shares outstanding.
Silicon Graphics International is a company that provides high-performance solutions for compute, data management and data analytics, operating through two segments – Service and Product. Recently, Hewlett Packard Enterprise offered $275 million to acquire the company, and the transaction is expected to end during the first quarter of Hewlett Packard Enterprise’s fiscal 2017. Over the past 12 months, the company’s stock has gained 53.71%. For the fourth quarter of fiscal 2016 (ended June 24), the company reported a revenue of $122.71 million and flat EPS, which compares to a revenue of $152.90 million and a loss of $0.28 per share for the same period in the previous year. Earlier this month, Needham & Company LLC downgraded its rating on Silicon Graphics International’s stock to ‘Hold’ from ‘Buy’.
According to Insider Monkey’s hedge fund database, some of the investors long Silicon Graphics International (NASDAQ:SGI) at the end of June included Chuck Royce’s Royce & Associates, with a position valued at $16.78 million, Jim Simons’ Renaissance Technologies, with a $2.61 million position, and Ken Griffin’s Citadel Investment Group.
Among the new investors in Silicon Graphics International (NASDAQ:SGI) during the quarter were Neil Chriss’ Hutchin Hill Capital, which had $246,000 invested in the company, Gavin Saitowitz And Cisco J. Del Valle’s Springbok Capital, which initiated a position worth $140,000, and Mike Vranos’s Ellington. On the other hand, Richard Driehaus’ Driehaus Capital sold its entire position previously valued at around $861,000.
You can access the original SEC filing by clicking here.
Ownership Summary Table
Name
Sole Voting Power
Shared Voting Power
Sole Dispositive Power
Shared Dispositive Power
Aggregate Amount Owned Power
Percent of Class
Gabelli Funds
1,066,600
1,066,600
1,066,600
2.94%
GAMCO Asset Management Inc. I.D. No. 13-40445
171,600
171,600
171,600
0.47%
Gabelli Securities, Inc. I.D. No. 13-3379374
923,517
923,517
923,517
2.55%
Teton Advisors, Inc. I.D. No. 13-4008049
200,000
200,000
200,000
0.55%
GGCP, Inc. I.D. No. 13-3056041
0.00%
GAMCO Investors, Inc. I.D. No. 13-400786
0.00%
Associated Capital Group, Inc. I.D. No. 47-3965991 Check the appropriate box if a member of a group (SEE INSTRUCTIONS) (a) (b)
0.00%
Mario J. Gabelli
0.00%
Follow Mario Gabelli's GAMCO Investors
We may use your email to send marketing emails about our services. Click here to read our privacy policy.
Page 1 of 18 – SEC Filing
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
Silicon Graphics International Corp.
(Name of Issuer)
Common Stock
(Title of Class of Securities)
________82706L108_________
(CUSIP Number)
David Goldman
GAMCO Investors, Inc.
One Corporate Center
Rye, New York 10580-1435
(914) 921-5000
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
______________________ August 12, 2016________________________
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box .
Follow Silicon Graphics International Corp (NASDAQ:SGI)
Follow Silicon Graphics International Corp (NASDAQ:SGI)
We may use your email to send marketing emails about our services. Click here to read our privacy policy.
Warren Buffett never mentions this but he is one of the first hedge fund managers who unlocked the secrets of successful stock market investing. He launched his hedge fund in 1956 with $105,100 in seed capital. Back then they weren’t called hedge funds, they were called “partnerships”. Warren Buffett took 25% of all returns in excess of 6 percent.
For example S&P 500 Index returned 43.4% in 1958. If Warren Buffett’s hedge fund didn’t generate any outperformance (i.e. secretly invested like a closet index fund), Warren Buffett would have pocketed a quarter of the 37.4% excess return. That would have been 9.35% in hedge fund “fees”.
Actually Warren Buffett failed to beat the S&P 500 Index in 1958, returned only 40.9% and pocketed 8.7 percentage of it as “fees”. His investors didn’t mind that he underperformed the market in 1958 because he beat the market by a large margin in 1957. That year Buffett’s hedge fund returned 10.4% and Buffett took only 1.1 percentage points of that as “fees”. S&P 500 Index lost 10.8% in 1957, so Buffett’s investors actually thrilled to beat the market by 20.1 percentage points in 1957.
Between 1957 and 1966 Warren Buffett’s hedge fund returned 23.5% annually after deducting Warren Buffett’s 5.5 percentage point annual fees. S&P 500 Index generated an average annual compounded return of only 9.2% during the same 10-year period. An investor who invested $10,000 in Warren Buffett’s hedge fund at the beginning of 1957 saw his capital turn into $103,000 before fees and $64,100 after fees (this means Warren Buffett made more than $36,000 in fees from this investor).
As you can guess, Warren Buffett’s #1 wealth building strategy is to generate high returns in the 20% to 30% range.
We see several investors trying to strike it rich in options market by risking their entire savings. You can get rich by returning 20% per year and compounding that for several years. Warren Buffett has been investing and compounding for at least 65 years.
So, how did Warren Buffett manage to generate high returns and beat the market?
In a free sample issue of our monthly newsletter we analyzed Warren Buffett’s stock picks covering the 1999-2017 period and identified the best performing stocks in Warren Buffett’s portfolio. This is basically a recipe to generate better returns than Warren Buffett is achieving himself.
You can enter your email below to get our FREE report. In the same report you can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12-24 months. We initially share this idea in October 2018 and the stock already returned more than 150%. We still like this investment.
Free Report Reveals
Warren Buffet's Secret Recipe
Our Price: $199FREE
We may use your email to send marketing emails about our services. Click here to read our privacy policy.
