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New Media Investment Group Inc (NEWM): Spencer M. Waxman’s Shannon River Fund Management Discloses 5.5% Stake

Spencer M. Waxman’s Shannon River Fund Management disclosed today a new position in New Media Investment Group Inc (NYSE:NEWM). According to the Schedule 13G filing, the fund currently holds 2 million shares of Common Stock, which account for 5.5% shares of the company’s outstanding Common Stock, and are worth approximately $34.4 million at current stock prices.

Shannon River Fund Management is now the second-largest institutional shareholder at New Media Investment Group Inc (NYSE:NEWM), only outranked by Leon Cooperman’s Omega Advisors, which last disclosed ownership of 3.81 million shares of Common Stock. Another major fund betting on this company is D. E. Shaw, which last acknowledged holding 371,445 shares of Common Stock.

New Media Investment Group Inc  NEWM

New Media Investment Group Inc (NYSE:NEWM) is a $620.7 million market cap publisher of locally-based print and online media in the United States. Its products serve over 128,000 business advertising accounts and reach approximately 10 million people on a weekly basis.

According to the filing, Shannon River Fund Management’s stock purchase took place on September 18, the day after New Media Investment Group Inc (NYSE:NEWM) announced a public offering of Common Stock, priced at approximately $16.25 per share. The company expected gross proceeds of roughly $105.62 million, but ended up collecting approximately $121 million (before deducting underwriting discounts and commissions and offering expenses), as they sold 7.45 million shares, instead of the 6.5 million shares initially expected. The company said that it intends to use this money for working capital and other general corporate purposes, which may include potential investments in, and acquisitions of, local media businesses and assets.

Shannon River Fund Management is a New York-based hedge fund managed by Spencer M. Waxman. According to its latest 13F filing (for the second quarter of 2014), its equity portfolio is worth almost $2 billion, and has a strong focus on information technology (35.8% of the total equity portfolio), financial (31.9%) and consumer discretionary (22.6%) stocks.

Its two largest bets are placed on ETF options; however, its biggest long positions are the ones at WebMD Health Corp. (NASDAQ:WBMD) and IAC/InterActiveCorp (NASDAQ:IACI), two small-cap internet services companies. The fund owns 1.76 million WebMD Health Corp. (NASDAQ:WBMD) shares, worth more than $85 million, and 1.15 million IAC/InterActiveCorp (NASDAQ:IACI) shares, worth almost $80 million.

Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned

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