In a new filing with the U.S. Securities and Exchange Commission, Becker Drapkin Management, managed by Matthew Drapkin and Steven R. Becker, revealed that it has entered into an agreement with TeleCommunication Systems Inc. (NASDAQ:TSYS). Under the terms of the agreement, TeleCommunication Systems Inc. (NASDAQ:TSYS) has agreed to appoint to the board two of three candidates nominated by Becker Drapkin Management.
According to the filing, Becker Drapkin Management holds 3.69 million class A common stock shares of TeleCommunication Systems Inc. (NASDAQ:TSYS), representing 6.7% of the company’s class A common stock shares outstanding. The stake represents a significant increase from 1.69 million shares the fund reported in its latest 13F filing.
Dallas, Texas-based Becker Drapkin Management was founded in 2004. The hedge fund focuses on small-cap value situations in the U.S. equity markets. It likes to invest in technology, services, and consumer goods stocks. As of the end of September 2014, Becker Drapkin Management holds a 13F equity portfolio worth $181.91 million. Comverse Inc (NASDAQ:CNSI), XO Group Inc (NYSE:XOXO), and EMCORE Corporation (NASDAQ:EMKR) were represented as the largest equity positions, in term of value at the end of the third quarter of 2014. According to its latest 13F, Becker Drapkin Management held 1.45 million shares of Comverse Inc (NASDAQ:CNSI). Since October 2014, the company’s stock dropped by over 21%. The investor reported ownership of 2.08 million shares of XO Group Inc (NYSE:XOXO), and around 3.20 million shares of EMCORE Corporation (NASDAQ:EMKR), as of the end of the third quarter of 2014.
Last month, Becker Drapkin Management disclosed in a new SEC filing that it further cut its exposure to PowerSecure International Inc. (NYSE:POWR). According to the filing, the fund holds around 976,500 shares of the company, the stake is down from around 1.40 million shares held earlier.