Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Starboard Value, Elliott Associates Sell Shares of Emulex Corporation

Emulex Corporation (NYSE:ELX), a company engaged in providing network connectivity and management solutions, has been in the middle of some important moves coming from some of its investors. Two hedge funds, Starboard Value, and Elliott Associates  recently filed amended forms with the Securities and Exchange Commission, reporting decreasing slightly their positions in the company.


Jeffrey Smith‘s hedge fund, Starboard Value disclosed recently cutting its position to around 4.1 million shares. This is already the second decline that Starboard is applying towards its holding in Emulex. Last week, the fund reduced its stake to 5.34 million shares, from 7.25 million held earlier. The position held currently by Starboard amasses 4.4% of the company’s common stock, down from 5.8%. Jeff Smith’s fund also revealed a purchase agreement signed with Emulex, under the terms of which the fund agrees to sell 600,000 shares of the company back to Emulex for an aggregate price of $4.7 million.

In a separate filing, Paul Singer‘s fund Elliott Associates reported that it now holds around 7.5 million shares of Emulex, down from over 8.9 million held according to an earlier filing. At the same time, the fund switched the nature of the position and now it’s stake in the company is a passive one. In an earlier filing, Elliott disclosed an agreement with the company’s board, under the terms of which, the Emulex shareholders will elect a new Board at their next meeting. Also, the current Board will reduce its number to comprise at most 11 members.

Amid the moves by Starboard and Elliott, the stock of Emulex closed yesterday by almost 4% in red. The stock of Emulex lost over 7% over the past month.

Disclosure: none

Recommended Reading:

Zac Hirzel, Hirzel Capital Management Go Activist on Aeropostale

Privet Fund Reports Upping Position in StarTek

Jeffrey Jacobs Change His Mind Regarding MTR Gaming Group – Eldorado Resorts Merger

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.