Jeremy Mindich’s Scopia Capital Sells Chunk of Mellanox Technologies Ltd. (MLNX) Stake As Headwinds Blow

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A newly amended 13G filing with the SEC reveals that Matt Sirovich and Jeremy Mindich’s Scopia Capital currently owns 1.88 million shares in Mellanox Technologies Ltd. (NASDAQ:MLNX), which represent 4.09% of the company’s outstanding common stock. The New York-based hedge fund firm has reduced its position in the company by 1.26 million shares, compared to the stake disclosed in the latest 13F filing.

Jeremy Mindich - Scopia Capital


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Follow Matt Sirovich And Jeremy Mindich's Scopia Capital

With an equity portfolio worth $4.7 billion, Scopia Capital is a value-driven hedge fund founded by Matt Sirovich and Jeremy Mindich in April 2001. It primarily employs a fundamentals-based investment approach and it has been quite successful in delivering strong performance throughout its existence as the hedge fund firm posted an annualized return of 9.65% from its inception in 2001 to August 2012. Even though Scopia Capital’s returns do not stand out from the crowd, the firm provides a really strong downside protection of the capital it manages. Specifically, the hedge fund has delivered positive performance each year ever since its inception, including 2008 when the S&P 500 plummeted by 37% (Scopia Capital returned 1.81%).

Mellanox Technologies Ltd. (NASDAQ:MLNX) is a leading supplier of end-to-end InfiniBand and Ethernet interconnect solutions and services for servers and storage, whose stock is up by 6.30% year-to-date, although it has been losing ground lately, amid  weak preliminary results reported by its industry peer, QLogic Corporation (NASDAQ:QLGC).

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