13D Management is a New-York firm that was founded by Kenneth Squire in 2011. The fund, an event driven asset manager, focused on imitating activist investors. Kenneth is a mutual fund manager who imitates activist hedge funds. He also leads 13D Monitor, a research service for major investment banks, top law firms, hedge funds and institutional investors. Previously, Kenneth was an associate in the corporate and securities department at Weil, Gotshal & Manges LLP.
13D Management, in its first 13F filing, revealed a total of 38 positions, worth in aggregate around $134.8 million. In this article, we will look at some of the largest positions from the 13F filing, as well as activist hedge funds that 13D Management is imitating.
According to the filing, 13D Management is bullish on Valeant Pharmaceuticals Intl Inc (NYSE:VRX), owning 68,273 shares, worth just over $8 million.The most recent 13F filings show that Valeant was the top holding of Jonathan Auerbach’s Hound Partners and second largest of Mal Serure’s Arrow Capital Managemen. Hound maintained its position in the multinational specialty pharmaceutical company during the fourth quarter, while Arrow increased it by 5%.
13D Management reported owning 54,072 shares of Howard Hughes Corp (NYSE:HHC), which develops and operates master planned communities and mixed use properties. Recently, William Ackman‘s Pershing Square boosted its stake in HHC to 5.48 million shares from 3.57 million held at the end of September 2013.
In Cracker Barrel Old Country Store Inc. (NASDAQ:CBRL), 13D Management owns 53,732 shares, worth close to $6 million. In December 2013, Biglari Capital Corp., a subsidiary of Biglari Holdings Inc (NYSE:BH), disclosed holding over 4.7 million shares of CBRL, with the stake amassing 19.9% of the stock. The company, which offers a friendly home-away-from-home in its old country stores and restaurants, has a market cap of $2.37 billion.
The fund also holds 59,400 shares of Lear Corporation (NYSE:LEA), which supplies automotive seating and electrical distribution systems. The most recent 13F filing of Richard Mcguire’s Marcato Capital Management shows that the fund holds 5.65 million shares of the company, which is a tier I supplier of automotive seating systems and related components to automotive manufacturers.
The fund disclosed ownership of 79,550 shares of Forest Laboratories Inc. (NYSE:FRX). In its latest 13F, Nehal Chopra’s Ratan Capital disclosed holding 639,091 shares of Forest Laboratories, a significant increase from 471,400 shares held in the third quarter of 2013. FRX is a fully integrated, specialty pharmaceutical company largely focused on the United States market. The market cap of FRX is $26.22 billion.