This investment catalyst has been building since January 8 2009 when Steel Partners II first announced their intention to convert their hedge fund into a publicly-traded holding company. Following months of litigation with several investors seeking to block the restructuring, Steel was granted Court approval to move forward with the plan on June 19. As a result, on July 15, Steel Partners distributed approximately half of the economic value of their fund via cash and a pro rata in-kind distribution of securities to those investors seeking to exit the fund immediately. Following the distribution, a number of smaller, illiquid securities observed enormous selloffs – causing a massive imbalance in supply and demand, and resulting in a precipitous decline in the market value of certain companies. We believe the dramatic reduction in value at a few of these companies is a short-term phenomenon and not correlated with the fundamental value intrinsic to the company.
Click here to download a complimentary copy of Hedge Fund Solutions' Catalyst Investment Research report for Steel Partners II Portfolio.
Also, take a look at some of our previous research on companies where activist investors have made sizeable investments and are pressing management to unlock hidden pockets of value.
TIER, AVGN, CTO, TECUA, CHE, PPCO, ENZN, LGF
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