Rivulet Capital, led by Barry Lebovits, Joshua Kuntz and Oscar Schafer, disclosed with the U.S. Securities and Exchange Commission its equity positions held at the end of the fourth quarter of 2014. The fund’s portfolio, worth around $120 million, included five holdings in which the fund added more shares during the fourth quarter, while it reduced its positions in four holdings. The bulk of the fund is invested in Technology stocks, which represent over 70% of its portfolio. InterXion Holding NV (NYSE:INXN), Nice-Systems Ltd (ADR) (NASDAQ:NICE), RealD (NYSE:RLD), Cogent Communications Holdings Inc (NASDAQ:CCOI), and Verint Systems Inc. (NASDAQ:VRNT) were the top holdings, which we will discuss below.
Based in New York City, Rivulet Capital is a long/short hedge fund which was seeded by Oscar Schafer in 2012. Mr. Schafer, chairman of Rivulet Capital, is a well-known Wall Street professional, who makes regular appearances on CNBC. He typically talks long-term trends in the equity markets.
InterXion Holding NV (NYSE:INXN) continues to be a favorite stock of Rivulet Capital, which increased its position in the company by 4%. The fund reported ownership of 970,000 shares of the company, up from 925,000 shares reported previously. The holding is valued at $26.52 million. Netherlands-based InterXion Holding NV (NYSE:INXN) is a $2.20 billion market cap provider of cloud and carrier-neutral co-location data center services in European countries. Recently, the company announced that it inked an all-share merger deal with TelecityGroup plc, a U.K.-based provider and operator of data centers in key European cities. Under the agreement, Interxion shareholders would receive 2.3386 TelecityGroup shares per Interxion share. Therefore, Interxion shareholders would own approximately 45%, and TelecityGroup shareholders approximately 55%, of the combined company, which will be listed on the London Stock Exchange. The deal requires shareholder approval, and is expected to be completed in the second half of 2015.
Nice-Systems Ltd (ADR) (NASDAQ:NICE) holds the second spot. In the $3.58 billion market cap technology company, Rivulet Capital upped its stake to 365,000 shares, worth $18.49 million, from the 335,000 shares the fund held at the end of Sept. 30, 2014. Shares of the company gained nearly 47% during last one year. For the fourth quarter of 2014, the company posted net income of $61.6 million, up from $46.2 million in the same period in 2013. It reported revenues of $294.2 million, up 8.6% from the $271.0 million in the same year-ago period. Other investors betting big on the company include George Soros’ Soros Fund Management, which reported holding 1.59 million shares of the company as of Dec. 31, 2014. During the fourth quarter, Cadian Capital, led by Eric Bannasch, increased its position in the company by over 10% to 765,000 shares.
The third-most valuable holding of Rivulet Capital was RealD (NYSE:RLD), in which the fund disclosed owning 1.18 million shares, with a reported value of $13.87 million. The stake represents an 18% increase from the 1.00 million shares the fund held earlier. RealD (NYSE:RLD) is a global licensor of 3D and other visual technologies, and has a market cap of $644.13 million. The company’s stock has moved up over 18% since February 2014. For the third quarter of fiscal 2015, ended December 31, 2014, RealD (NYSE:RLD) posted a net loss of $11.3 million, or $0.23 a share, versus a net loss of $0.3 million, or $0.01 per share, for the third quarter of fiscal 2014. Total revenue was $32.6 million, down from $55.4 million for the third quarter of fiscal 2014.
Among the largest shareholders of the company is Bares Capital Management, run by Brian Bares, which held 7.90 million shares as of Dec. 31, 2014, and Jeffrey Smith’s Starboard Value LP, which disclosed holding 4.95 million shares at the end of 2014.