Gates Capital Management Raises Stake In Richardson Electronics Ltd. (RELL)

Gates Capital Management, managed by Jeffrey Gates, has disclosed slightly raising its position in Richardson Electronics Ltd. (NASDAQ:RELL). According to the filing, the fund owns 2.83 million shares of the company, slightly up from 2.70 million shares disclosed in the fund’s 13F filing. The new position is equivalent to around 23.88% of common stock.

Richardson Electronics Ltd. (NASDAQ:RELL) provides engineered solutions, power grid and microwave tubes and related consumables, and customized display solutions serving customers in the RF and microwave communications, military, marine, aviation, industrial, scientific and medical markets. The company has a market cap of $148.1 million. In December 2013, Gates Capital disclosed increasing its position in Richardson Electronics Ltd. (NASDAQ:RELL) from 2.6 million shares held previously.

The company recently has reported third-quarter fiscal 2014 results. For the third quarter, the company’s net sales were $32.9 million, a 2.2% decrease compared to net sales of $33.6 million in the prior year. The net loss amounted to $0.5 million, slightly up from $0.4 million in the previous year.

Among the largest shareholders of the company include Robert G. Moses’ Rgm Capital and Chuck Royce’s Royce & Associates, owning approximately 1.17 million shares and 927,900 shares, respectively.

New York-based Gates Capital was founded in 1996 by Jeffrey Gates, who currently serves as president and portfolio manager. Jeffrey Gates is an event-driven investor who seeks to identify “dislocation events” at public companies which are creating cash flow and sustainable value. It expresses its views through both debt and equity investments. At the end of January, the fund reported boosting its stake in International Game Technology (NYSE:IGT) to 12.51 million shares.

In its most recent 13F, Gates Capital disclosed ownership of a $262.7 million stake in Darling International Inc. (NYSE:DAR), containing 12.58 million shares. In Nortek Inc (NASDAQ:NTK), the fund revealed owning around 3.0 million shares of the company. DaVita HealthCare Partners Inc (NYSE:DVA) is another important holding, in which the fund held 3.01 million shares.

Disclosure: none

Recommended Reading:

Broadwood Capital Reduces Futher Questcor Pharmaceuticals Inc (QCOR)

RA Capital Reports New 5.8% Position In Recently Public Versartis Inc (VSAR)

Anchorage Advisors Sells Over 1 Million Shares In Central Pacific Financial Corp. (CPF)