Eton Park Boosts Stake in Riverbed Technology, Inc. (RVBD); Brigade Capital Ups Position in Magnachip Semiconductor Corp (MX)

Two investors among those that we track reported increasing their stakes in two companies: Riverbed Technology, Inc. (NASDAQ:RVBD) and Magnachip Semiconductor Corp (NYSE:MX) . In the first filing, Eric Mindich‘s Eton Park Capital revealed surging its stake in Riverbed Technology to 9.00 million shares, from 2.95 million shares disclosed in the fund’s latest 13F. In another filing, Don Morgan‘s Brigade Capital revealed raising its exposure to Magnachip Semiconductor Corp (NYSE:MX) to 1.93 million shares from 1.68 million shares held previously. Following the increase, Eton Park holds 5.63% of Riverbed Technology and Brigade Capital owns 5.5% of Magnachip Semiconductors, both stakes being passive by nature.


Let’s start with Riverbed Technology, Inc. (NASDAQ:RVBD), in which, as it was mentioned above, Eton Park surged its position to 9.0 million shares. The investor increased its exposure to the company after Riverbed announced the extension of its partnership with Amazon in the cloud storage industry. Riverbed Technology, Inc. (NASDAQ:RVBD)’s SteelStore virtual edition has been integrated with Amazon Web Services offering clients up to 8 TB of free storage on Amazon Simple Storage for six months. SteelStore is a service that allows customers to back up their business data on Amazon’s Simple Storage using compression, de-duplication, network acceleration and encryption, providing a fast access and ensuring data security and durability. With this partnership, both companies can get a competitive edge in the cloud storage business, which is growing at very high speeds.

Moreover, there is another reason why Eton (and other investors as well) is bullish on Riverbed Technology, Inc. (NASDAQ:RVBD). One of the largest shareholders of Riverbed is Paul Singer‘s Elliott Associates, which owns around 15 million shares of the company. Elliott has been negotiating with the company’s board for some time now, insisting that the board should consider the sale of the company to interested buyers, among whom is also Elliott. The investor offered $21 per share in cash to acquire Riverbed Technology, Inc. (NASDAQ:RVBD) in July, although the board considered that its plan is superior to the offer. Even though, Riverbed has been posting a consistent growth in sales and revenues, its stock still trades below the Elliott’s offer for buying the company.

All in all, Riverbed Technology, Inc. (NASDAQ:RVBD) seems like a good investment, which explains Eton’s ‘bullishness’. However, let’s take a look who else owns shares of the company. William B. Gray‘s Orbis Investment Management has decreased its stake during the second quarter and now owns 7.91 million shares of the company, followed by Cliff Asness‘ AQR Capital Management with 4.04 million shares, slightly up during the same period. Other investors hold less significant stakes, although many have increased their positions during the April-June period (see the full list here).

Next is Brigade Capital and Magnachip Semiconductor Corp (NYSE:MX). The stock of the small cap semiconductors company dropped by 40% year-to-date, with the company going through some issues with its financial statements. Earlier in March, the audit committe of the company’s board of directors identified that the company has incorrectly recognized revenue on certain transactions over the past years and now has to restate them. In addition, Magnachip Semiconductor Corp (NYSE:MX) has not filed its financial statements for the last two quarters. In this way, it is unclear why Brigade raised its stake in a company with an unclear financial situation and declining stock price, although the stake amasses a tiny portion of the $2.9 billion equity portfolio.

In addition, Magnachip Semiconductor Corp (NYSE:MX) could be found in equity portfolios of several investors from our database, which also could mean that the stock might be set to grow in the future, after it solves its problems. Marc Lasry‘s Avenue Capital owns around 4.09 million shares as of the end of June, followed by Lakewood Capital Management, led by Anthony Bozza, and Steve Cohen‘s Point72 Asset Management with 2.02 million and 1.44 million shares respectively.

Disclosure: none

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