SPX Corporation (SPW): Relational Investors Continues to Unload Shares

Although SPX Corporation (NYSE:SPW)’s last quarterly results were formidable, the price of its stock has been declining steadily over the past year, losing around 22% of its value. One of the reasons could be that Relational Investors has been steadily decreasing its position in the company, selling large amounts of shares since March 2014. After all, Mr. Whitworth’s asset management firm is SPX Corporation’s largest institutional investor, holding an important activist stake. Nevertheless, the investment fund’s reasons for gradually reducing its exposure to the company are no mystery, and are certainly not related to a bearish stance towards the stock.

Numerous institutional investors continue to hold large positions in SPX Corporation, displaying optimism regarding the company’s future performance. Joel Greenblatt’s Gotham Asset Management for example held 674,700 shares as of the end of the third quarter, after increasing its stake by 53%.  Cliff Asness’ AQR Capital Management is also bullish, boasting a position amounting to 391,900 shares at the end of the same period. Ken Griffin’s Citadel Investment Group on the other hand has been reducing its exposure to SPX Corporation, disclosing a stake of 178,900 shares at the close of the third quarter, a reduction in its holdings of 46%.

Disclosure: Pablo Erbar holds no position in any stocks or funds mentioned.