Montage Technology Group Ltd (MONT): GLG Partners Ups Passive Stake Prior to Acquisition

Man Group‘s hedge fund GLG Partners has recently disclosed raising its position in Montage Technology Group Ltd (NASDAQ:MONT) in a new filing with the US Securities and Exchange Commission. GLG Partners reported ownership of some 1.56 million shares of the company, which represent 5.53% of the company’s stock. The fund previously held 226,000 shares of Montage Technology, as revealed in its latest 13F filing.

Montage Technology Group

GLG Partners was founded by Noam Gottesman in 1995 as a division on Lehman Brothers International, headquarted in Europe. Later in 2010, the fund was acquired by Man Group, which paid around $1.6 billion to create a huge hedge fund with over $60 billion in Assets Under Management. At the end of the second quarter, GLG Partners had an equity portfolio valued at around $4.20 billion spread across many sectors. The fund has not had a very good year, losing around 10% so far. Grifols SA, Barcelona (NASDAQ:GRFS) is representing the largest stake in terms of value, amassing around 2.59% of the total portfolio value, followed by Actavis plc (NYSE:ACT) and Tableau Software Inc (NYSE:DATA). Grifols SA’s stock lost around 3% year-to-date, while Actavis and Tableau appreciated by 41% and 18% respectively.

Let’s get back to Montage Technology Group Ltd (NASDAQ:MONT) though. The company is specialized in analog and mixed-signal semiconductor solutions for the home entertainment and cloud computing industries. The stock appreciated by more than 40% since the beginning of the year, outperforming the semiconductors industry which appreciated by around 15% year-to-date. However, GLG Partners added the company to its equity portfolio during the second quarter. Since the end of June, Montage’s stock picked up around 6%.

The investor raised its exposure to the company amid the announcement that Montage Technology Group Ltd (NASDAQ:MONT)’s results for the third quarter exceeded the guidance. The company’s preliminary revenue amounts to $46 million, versus expected $41 million.

Moreover, earlier in June, Montage Technology Group Ltd (NASDAQ:MONT) entered into a merger agreement with Shanghai Pudong Science and Technology Investment Co., Ltd., under the terms of which the latter will acquire the former for $22.60 per share, which values the company at around $693 million. The subject is still to be approved by other shareholders, as well as by the antitrust and regulatory bodies.

In August, Brian Taylor‘s Pine River Capital Management reported raising its stake in Montage Technology Group Ltd (NASDAQ:MONT) to around 1.78 million shares, from 1.01 million shares held previously, which makes it one of the largest institutional investors, together with GLG Partners.

To sum up, Montage Technology Group Ltd (NASDAQ:MONT) represents a sold investment, which might still bring some small profits, since the price of its merger is still above the current stock price. Moreover, it is a company with solid financial results, backed by many important investors such as GLG Partners and Pine River.

Disclosure: none