We don’t and can’t pay attention to every single hedge fund filing. There are just too many of them. However, we pay extra attention when a well-known value investor starts backing up the truck and loading up. Hedge funds rarely buy more than 10% of a company’s outstanding shares. They usually stop at 9.9% or so because they don’t want to become a company’s insider and be subject to a different regulatory reporting requirements. For example, large shareholders who hold more than 10% of a company’s outstanding shares have to report their transactions within 48 hours because they are considered to be privy of confidential inside information about the company.
So, when a value hedge fund buys more than 10% of a company’s stock, we believe this is a credible buy signal. Paul J. Isaac’s Arbiter Partners Capital Management today disclosed that it now controls 14.16% of Capital Senior Living Corp (NYSE:CSU). The famed value investor owned only 9% of the company’s outstanding shares at the end of September. Below, you can see the detailed list of its most recent transactions which also includes a large call option purchase with a strike price of $25. Capital Senior Living Corp (NYSE:CSU) shares currently trade at $17.38, so Paul Isaac sees a lot of upside potential.
Page 1 of 7 – SEC Filing
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Under the Securities Exchange Act of 1934 (Amendment No. _2_)
Capital Senior Living
(Name of Issuer)
(Title of Class of Securities)
Joshua Musher, 530 Fifth Avenue 20 th Floor, New
York, NY 10036, 212-452-9119
(Name, Address and Telephone
Number of Person Authorized to Receive Notices and Communications)
December 16, 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 [ ].
Note: Schedules filed in paper format shall include a signed
original and five copies of the schedule, including all exhibits. See 240.13d
-7(b) for other parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a
reporting persons initial filing on this form with respect to the subject class
of securities, and for any subsequent amendment containing information which
would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page
shall not be deemed to be filed for the purpose of Section 18 of the
Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities
of that section of the Act but shall be subject to all other provisions of the
Act (however, see the Notes).