Phil Frohlich, Prescott Group: Phil Frohlich’s small- and mid-cap focused hedge fund Prescott Group Capital Management boosted its stake in PharmAthene, Inc. (NYSEMKT:PIP) to 10% of the company, a filing with the Securities and Exchange Commission has revealed. Prescott Group Capital Management raised its position to some 5.2 million shares, from the previously owned 4.7 million shares. The value of the current stake amounts to almost $11.3 million, at the current price of company’s stock.
The revenue of PharmAthene declined to $4.3 million in the second quarter of the year, from the year-ago amount of $6.3 million, the company said in a statement. At the same time, the company’s net loss increased to $1.2 million, or $0.02 per share, versus $0.8 million reported for the second quarter of last year. PharmAthene is engaged in the production of vaccines and other medical countermeasures for protection against different bio and chemical threats.
Through the recent acquisition, Phil Frohlich ensured Prescott’s position as one of the largest shareholders of PharmAthene. However, we should mention that another hedge fund was bullish on PharmAthene in the latest round of 13F filings. This hedge fund is Sophrosyne Capital, managed by Benjamin J Taylor, which at the end of second quarter owned 804,902 shares. Citadel Investment Group, managed by Ken Griffin, dropped its long position in PharmAthene, and currently holds what appears to be a long straddle option position.