Raging Capital Double-Shorting Valeant, Goes Long AFI, CAVM, Others

TriNet Group Inc (NYSE:TNET)

– Shares Owned by Raging Capital Management (as of June 30): 920,429

– Value of Raging Capital Management’s Holding (as of June 30): $19.14 million

Raging Capital bought 920,429 shares of Cloud-based human resources provider TriNet Group Inc (NYSE:TNET) during the second quarter. The aggregate value of the position stood at $19.14 million on June 30. The company reported second quarter EPS of $0.27, better than the estimates of $0.25, while revenue for the quarter came in at $149.2 million, above the consensus target of $148.11 million. Following the results, Piper Jaffray reiterated its ‘Neutral’ rating for TriNet Group Inc (NYSE:TNET) and upped its price target on it to $21. Eric Bannasch’s Cadian Capital owns 2.13 million shares of the company as of June 30.

Range Resources Corp. (NYSE:RRC)

Raging Capital dumped all its Range Resources Corp. (NYSE:RRC) stake during the second quarter, selling over 1.1 million shares of the Texas-based oil and gas company. The company reported a second quarter net loss of $224.9 million, nearly double the loss of $118.6 million that it reported for the same quarter of last year. Revenue of $363 million did sharply beat analysts’ estimates of $326.91 million however. The stock has gained over 62% year-to-date. Andreas Halvorsen’s Viking Global had over 9.33 million shares of Range Resources Corp. (NYSE:RRC) in its portfolio at the end of June.

Valeant Pharmaceuticals Intl Inc (NYSE:VRX)

Raging Capital Management owns a short position in Valeant Pharmaceuticals Intl Inc. (NYSE:VRX) that has been extremely prosperous. Raging Capital’s short positions should get the attention of traders, as its short book has gained 14.3% in the first half of 2016, fueled in part by Valeant’s downfall, as it started shorting the company when it was trading at around $170. It now trades at a mere $31.27. In the second quarter letter to clients, Raging Capital warned that Valeant could go bankrupt. The fund does not believe that the company will improve its financial position by selling its assets and has also started shorting Valeant’s unsecured notes to make a “meaningful” profit as the risk of the company’s bankruptcy swells. On Monday, Valeant Pharmaceuticals appointed Paul Herendeen, a drug industry veteran, as its CFO. The beleaguered company is reportedly facing criminal charges for allegedly defrauding insurers by hiding its relationship with a specialty pharmacy that helped boost its drug sales. Valeant Pharmaceuticals Intl Inc. (NYSE:VRX)’s stock has lost over 69% so far in 2016.

Disclosure: None