Nantahala Capital reported its 6.1% activist stake in Adams Golf Inc. (ADGF) on November 29th. Now the firm has 476,615 shares in ADGF. According to the filing, Nantahala Capital made several transactions in November and bought 100 thousand shares at about $5.43 per share. Nantahala Capital initiated its ADGF position in July 2011. The firm reported 385 thousand shares or 5% passive stake at that time. ADGF is now trading at $5.75, and has returned 22% so far in 2011.
Nantahala Capital Management LLC serves as a financial investment advisory to its customers. Its clients include security portfolios, institutions, and businesses. Nantahala Capital’s investment strategy includes investing in small cap stocks, and using fixed-income instruments. Wilmot B. Harkey and Daniel Mack are serving as the manager partners of the firm. Nantahala Capital managed to beat the Russell 2000 index by 25 percentage points per year between August 2004 and April 2009.
According to Yahoo! Finance, Adams Golf, Inc., “together with its subsidiaries, designs, assembles, markets, and distributes golf clubs for various skill levels primarily in the United States. The companys products include Idea Tech V3 irons and hybrids, Idea a7 and a7 OS irons and hybrids, Speedline Fast 11 and Speedline 9064 drivers, Speedline Fast 11 fairway woods, and Idea Pro Black hybrids and irons. It also provides Tom Watson signature wedges and the Puglielli wedges, as well as golf bags, hats, and other accessories. The company sells its products to on and off course golf shops, sporting goods retailers, mass merchants, and international distributors under the Yes! Putters, Women’s Golf Unlimited, the Lady Fairway, and Square 2 brands. Adams Golf, Inc. was founded in 1987 and is based in Plano, Texas.”