David Nierenberg’s Nierenberg Investment Management Reduces Exposure to its Largest Holding

Other financial institutions seem to agree with Nierenberg Investment Management’s assetment, including Jim Simons’ Renaissance Technologies, which owns 267,900 shares of common stock, after increasing its stake in the equity by 17% during the third quarter. On the other hand, in its latest 13F filing Gregory Fraser, Rudolph Kluiber, And Timothy Krochuk’s GRT Capital Partners disclosed a reduction of 41% to its stake in Electro Scientific, revealing a holding of 95,100 shares.

Electro Scientific Industries, Inc. (NASDAQ:ESIO) operates in the semiconductor sector, providing the microtechnology industry with laser-based solutions. The company’s laser systems are utilized in the manufacture of small components found in computers, semiconductors, and other consumer electronics, whose features require precise structuring. In mid-January, shareholders received good news when Electro Scientific announced the purchase of Topwin Optoelectronics. The acquisition of the Wuhan, China-based laser manufacturer, will not only allow the company to enhance its design capabilities, but also further penetrate the Chinese markets, thus increasing sales.

In addition to the positive announcement regarding the expansion of operations in China, analysts project Electro Scientific will grow significantly over the coming years, as the industry as a whole continues on its ascendent path. As stated above, the large position still held by Nierenberg Investment Management suggest it also remains bullish in the long-term, despite the recent reduction in its exposure to the stock.

Disclosure: none.