Universal Power Group Inc. (NYSE:UPG) shares remained about even today after 3V Capital Management disclosed a 12.6% stake in the company and expressed their concern about UPG's stock price, which has fallen 33.6% since the IPO last December. The hedge fund said that it believes the stock is grossly undervalued at this price and that the company's board should work to create shareholder value in the most effective and expeditious way and do what is possible to ensure the market is reflective the fair value of the business as consistently and often as feasible. Consequently, 3V requested that it be able to express its ideas and views on ways to enhance shareholder value with representation on the company's board.

What exactly does the hedge fund want to accomplish? Well, according to their letter 3V has an excellent relationship with senior management and they intend to work closely with them and the board to help refine and better communicate their business strategy and operating plans to the investment community. Given the hedge fund's ties to institutional investors and the analyst community, it could help make the company much more known in the market. 3V also clued us into some other possibilities in Item 4 of their Schedule 13D filing where they noted that they may recommend transactions specified in clauses (a) through (j) of Item 4, which could mean a sale of the company, acquisition of other companies, changing of strategies, adopting or destroying anti-takeover measures, and restructuring the company's capitalization or dividend policy. In the end, there are clearly a lot of things that 3V could do, and with such a large stake in the company they should not have any trouble getting things done! This makes UPG a stock worth watching over the next few months!