
Barington Capital
is an activist hedge fund that has never had a bad investment,
according to Dealbreaker magazine. The firm recently filed its Schedule
13F-HR filing with the SEC detailing its current holdings.
Unfortunately, Barington has been holding many of its stocks for a long
time which means that it may be too late for investors to trade
alongside the firm. Luckily, the recent economic downturn has pushed
many of these stocks down off their highs and may give investors and
opportunity to invest alongside one of Wall Street’s greats. So,
without further adieu, here are some of Barington’s top holdings for
your consideration!
Barington’s largest holding is The Pep Boys - Manny, Moe & Jack
(NYSE: PBY) in which it has a stake worth approximately $64,586,000.
The automotive retail and service chain has been beaten down nearly 50
percent off of its highs of $22.49 trading now at just $11.45. The
company has been struggling since it announced that its losses widened
it would close stores, and reduce staff in November of last year.
Recently, Pep Boys struck a deal with Lanelogic to enable its customers
to sell used vehicles, which many analysts believe will boost
profitability for the struggling company. Meanwhile, the Chairman of
the Board also picked up 50,000 shares ahead of the announcement. And
finally, the same strong fundamentals that prompted hedge funds like
Barington to take a stake in this company still exist, making it a
stock that is definitely worth watching!
Barington’s second largest holding is Lancaster Colony Corp.
(NDAQ: LANC) in which it holds a $60,606,000 stake. The manufacturer
and marketer of specialty food products is down about 25 percent off of
its highs, but recently reported strong earnings that have sent shares
higher. The company has also been buying back its own shares and
eliminated and has very little debt. Activists made big money in this
stock back in 2007 when the company divested its automotive accessory
divisions. Its willingness to unlock value and strong fundamentals
despite a troubled economy has made Lancaster a stock that is
definitely worth watching!
Barington’s third largest stake is in A. Schulman, Inc.
(NDAQ: SHLM) in which it holds $51,019,000 worth of stock. The stock is
trading about 20 percent off of its highs for the year, but recently
announced steps that it was taking to improve its profitability in
North America. The company plans to shut down its manufacturing
facility in St. Thomas, Ontario and to pursue a sale of its plan in
Orange, Texas. This consolidation of production will improve overall
capacity utilization and restore long-term profitability and stead
growth to its North American operations. There has also been some
speculation that the Schulman may pursue strategic alternatives after
Ramius Capital installed two board members while Barington still holds
a large stake. Combined, these factors make SHLM a stock worth
considering!
Barington also holds stakes in Consolidated-Tomoka Land Co. (AMEX:
CTO), Convergys Corp. (NYSE: CVG), Dillards Inc. (NYSE: DDS), Fisher
Communications Inc. (NDAQ: FSCI), Griffon Corp. (NYSE: GFF), Macy’s
Inc. (NYSE: M), and Syms Corp. (OTC: SYM). In the end, these are all
stocks worth watching given the activist hedge fund’s impeccable record
of success, especially given that many of them are now available at
bargain basement prices!
Related Companies
Fortress Investment Group LLC (FIG)
Och-Ziff Capital Management Group LLC (OZM)
Franklin Resources, Inc. (BEN)
The Asia Tigers Fund, Inc. (NYSE: GRR)
Gamco Investors Inc. (GBL)
GLG Partners, Inc. (GLG)
AllianceBernstein Holding LP (AB)
American International Group Inc. (AIG)
Janus Capital Group Inc. (JNS)
U.S. Global Invetors, Inc. (GROW)