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Triumph Group Inc (TGI): Atlantic Investment Inches Down Stake and Reports Holding 7.4% of Company

Alexander Roepers‘ Atlantic Investment Management has slightly reduced its activist stake in Triumph Group Inc (NYSE:TGI), a new filing with the Securities and Exchange Commission showed. The fund disclosed ownership of around 3.74 million shares, versus 3.79 million shares held earlier. Following the decrease, Atlantic’s position amasses 7.4% of Triumph’s outstanding common stock.

Alexander Roepers

Atlantic Investment Management is a fundamental-value focused hedge fund that was founded in 1988 and currently has around $2 billion in Assets Under Management and an equity portfolio of some $1.50 billion. The fund usually purchases large amounts of shares, as much as 7% in different companies, which allowed it to score annual returns of over 20% between 1993 and 2010. A couple of weeks ago, the fund has raised its stake in Oil States International, Inc. (NYSE:OIS) to 2.73 million shares, equal to 5.1% of the company. The stock lost around 8% since Atlantic raised its stake, mainly on the back of oil prices decline, but in the long-run, the investment will most likely turn out to be profitable.

In Triumph Group Inc (NYSE:TGI), Atlantic Investment Management has initiated a stake during the third quarter of 2013 and initially held 140,000 shares. Over the following quarters, the fund added more shares and is currently the largest shareholder among more than 700 funds that we track at Insider Monkey. The position is also the second-largest in the fund’s equity portfolio. Moreover, Mr. Roepers pitched the stock during his speech at the Sohn Canada conference along with two other companies: Owens-Illinois Inc (NYSE:OI) and Harman International Industries Inc./DE/ (NYSE:HAR).

Triumph Group Inc (NYSE:TGI) is a $3.2 billion manufacturer of different aerostructures, components, accessories and systems used in the Aerospace & Defense business. Its stock declined by around 15% since the beginning of the year, amid a significant drop at the end of January after the company announced its financial results for the third quarter of fiscal 2014 with EPS of $0.67, versus $1.43 for the same period of the previous fiscal year.  For the full fiscal year 2014, Triumph’s earnings amounted to $4.80, slightly below the consensus estimate of $4.86, but for the current fiscal year, the earnings are expected to grow to $5.83. Triumph Group Inc (NYSE:TGI) has also made several important moves in the last year, such as the acquisition of GE Aviation’s hydraulic actuation business and a couple of days ago it announced that it entered into a definitive agreement with Spirit AeroSystems Holdings, Inc. (NYSE:SPR), under the terms of which Triumph will take over the production of the  Gulfstream G650 and G280 wing programs.

Aside from Atlantic Investment, another shareholder of Triumph Group Inc (NYSE:TGI) is John Osterweis’ Osterweis Capital Management, which last disclosed ownership of 1.02 million shares of the company.

Disclosure: none