Pequot's 13G Filing Details Positions Unwound

by: Market Folly

Just Wednesday we saw a barrage (yes, a barrage) of amended 13G SEC filings from Art Samberg's hedge fund Pequot Capital. As you're well aware, Pequot Capital will be shutting down due to the negative effect ongoing investigations have had on the firm. Last week, we saw initial signs of the firm winding down as it sold the vast majority of its Akorn (NASDAQ:AKRX) position.

While Pequot's shuttering undoubtedly means many positions will be liquidated, not all of them will be. This is due to the fact that Pequot's Matawin and Special Opportunities funds will remain open under their current managers. So, while you'll see ample selling, you won't quite see a complete wipeout of Pequot's portfolios. And, with that in mind, let's get to what the fund has been selling.

As per all of the amended 13G filings, Pequot no longer holds a position in the following companies: Essex Rental (OTC:ERNTW), IMAX Corporation (NYSE:IMAX), GP Strategies Corporation (NYSE:GPX), STAAR Surgical (NASDAQ:STAA), Electronic Game Card (EGMI), Vicor Corp (NASDAQ:VICR), Chipotle Mexican Grill (NYSE:CMG), Ballantyne Strong (NYSEMKT:BTN) and Shells Seafood Restaurants (OTC:SHLLQ). While Pequot completely sold out of those positions, there were 3 remaining 13G/13D filing amendments made to positions it still holds.

Due to activity on June 30th, Pequot filed an amended 13G on Health Fitness Corporation (NYSE:FIT) and it now shows a 3.08% ownership stake in the company with 319,770 shares. Previously, Pequot had owned upwards of 523,400 shares. While it has not sold its entire stake, Pequot definitely has been selling.

Additionally, Pequot also filed an amended 13G on Velocity Express (VEXP) where it is now showing a 0.3% ownership stake with only 13,790 shares reported. Lastly, Pequot is now showing a 0.2% ownership stake in MedClean Technologies with 1,192,589 shares. That sums up everything Pequot filed with the SEC yesterday and we'll continue to bring you any other major updates in this regard. Because, after all, Pequot is not liquidating everything... just *mostly* everything.

When the dust settles, we'll have to see what positions Pequot's two remaining funds will hold. As we've mentioned before, Pequot is just another name to add to the list of prominent funds that have fallen during these rough times. Check out a list of 2008 hedge fund closures here.

If you're unfamiliar with this hedge fund, we've given background on Samberg & Pequot here. For more on Pequot, check out our past coverage of Pequot's March commentary from Byron Wien. Lastly, for those of you curious as to which other positions Pequot could possibly liquidate, you can check out the fund's portfolio here as filed with the SEC which details its holdings as of March 31st, 2009.