Tontine Associates: Portfolio Update

by: Market Folly

(This article now contains updated filing information, which is featured at the end.)

Tontine Associates, the hedge fund firm run by Jeffrey Gendell, has yet again filed numerous amended 13G's with the SEC. Tontine has had a very rough year and will be closing two of its hedge funds, which is the reason behind much of the portfolio shuffling. As we've detailed before, Tontine has recently sold out of 15 positions, as well as filed amended 13D's to many of its holdings. The firm recently filed nine more amended 13G's and has sold completely out of the following companies (in no particular order):

  1. Ceco Environmental (NASDAQ:CECE)
  2. Champion Enterprises (CHB)
  3. Downey Financial Corp (OTCPK:DWNFQ)
  4. Insteel Industries (NASDAQ:IIIN)
  5. Ecology & Environment (NASDAQ:EEI)
  6. Graftech International (GTI)
  7. Columbus McKinnon Corp (NASDAQ:CMCO)
  8. Emcor (NYSE:EME)
  9. Hovnanian (NYSE:HOV)

The firm had previously held positions in these companies but no longer own shares. All of the filings were made due to activity on December 31, 2008. You can view its entire portfolio here. Do note that the next update of portfolio holdings (13F filing) is due in a week or so, and its portfolio will undoubtedly change again as it continues to liquidate positions as it closes down two of its funds.

If you're unfamiliar with Tontine, he specializes in macro investing and takes very large, concentrated positions in companies he feels will benefit from those macro themes. Additionally, he will take on an activist role when necessary, to ensure shareholder returns. The fund has posted returns in excess of 100% in both 2003 and 2005. Conversely, this year has been the year from hell for Tontine. Recently, the firm announced that it would be closing two of its hedge funds - Tontine Capital LP and Tontine Capital Partners LP. Two of Tontine's other funds, Tontine-25 and Tontine Financial, will remain open.

Addendum (February 12, 2009):

  • In an amended 13G filing, Tontine is showing a 7.59% ownership stake in Patapsco Bancorp (OTCPK:PATD) with 141,385 shares.
  • The firm now shows a 7.55% ownership stake in PVF Capital (NASDAQ:PVFC) with 587,233 shares.
  • The firm has a 1.04% ownership stake in Beazer Homes (NYSE:BZH) with 408,200 shares.
  • The firm now shows a 0.47% ownership stake in Trinity Industries (NYSE:TRN) with 370,751 shares.
  • Gendell and company filed an amended 13G on AMR Corp. (AMR) disclosing a 0.15% ownership stake with 430,072 shares.
  • The firm shows a 0.03% ownership stake in Goodyear Tire & Rubber (NYSE:GT) with 61,200 shares.
  • The firm disclosed an updated 0.44% ownership stake in Ameron (NYSE:AMN-OLD) with 40,000 shares.
  • Tontine now shows a 0.09% ownership stake in Hexcel (NYSE:HXL) with 85,255 shares.