Martin Whitman’s Third Avenue Management filed a SEC 13G just now to disclose its 2.65%, or 730,188 shares passive stake in K Swiss Inc. (KSWS). Third Avenue Management was once KSWS’s largest hedge fund stakeholder. The firm reported 3.92 million shares in KSWS in the second quarter. However, it’s possible that Martin Whitman sold out his position during the third quarter because he did not report any share in KSWS in his third quarter 13F filing. KSWS was hammered by the Euro debt crisis in August. The stock is now trading at its 5-year low, at $2.89. KSWS has lost 75% so far in 2011.
Still there are some hedge funds retained their position in KSWS. Chuck Royce’s Royce & Associates reported 1.83 million shares in the stock, and this position was unchanged since Q2. Ric Dillon’s Diamond Hill Capital slightly increased its position by 2% and had 1.19 million shares.
Martin Whitman is an American investment advisor who once made some critic changes in GAAP. He is founder, Co-Chief Investment Officer, and Portfolio Manager of the Third Avenue Management. Based on the firm’s latest 13F, it had $4.9 billion portfolio value in the second quarter, and mainly invested in Financial, Basic Material, and Technology sector.
Per Google Finance, K-Swiss Inc. “designs, develops and markets an array of footwear, apparel and accessories for athletic, sports and fitness activities and casual wear under the K-Swiss brand. The Company also designs, develops and markets footwear for adventurers for all terrains under the Palladium brand and apparel for mixed martial arts under the Form Athletics brand, respectively. During the year ended December 31, 2010, sales of the Palladium brand and Form Athletics brand were approximately 14.4% and 0.1%, respectively, of total sales. The Company sells its products through specialty athletic footwear stores, pro shops, sporting good stores and department stores and also through a number of foreign distributors. The Company also sells its products through its Website and retail locations. On July 23, 2010, the Company acquired FORM Athletics.”