Chap-Cap Bitch Slapped
Formerly fearsome event-driven/activist/surfer dude hedge fund manager Robert L. Chapman is in a spot of trouble. It would seem many of his positions are going belly up, at least if you look at their stock prices:
The latest regulatory filings by Chapman’s California-based hedge fund, Chapman Capital LLC, suggest the hedge-fund manager has been rapidly selling his US stock holdings, including some losing companies such as Building Materials Holding Corp. and Nortel Networks Corp.
Chapman earlier this year reported holdings in just 13 companies valued at $54 million as of the end of 2007, down from more than 40 companies valued at $217.5 million at the end of September, and stock valued at $324.8 million this time last year...... It’s possible Chapman moved some money into assets that don’t have to be disclosed, such as cash or international stocks. But fund watchers say this is unlikely, given the nature of the firm - as activist hedge funds often own just a handful of stocks and agitate companies for changes that could boost share prices.
“It’s possible, but are investors paying him his fees so he can put the money in cash?” said one person familiar with the fund’s recent selling who asked not to be identified.
His selling has included Building Materials, down 69.8 percent over one year, Nortel, down 70 perecnt, and Openwave Systems, down 64 percent. New York Post
And while Chapman is friends with Dan Loeb, we always thought his writing parroted the master Dan, and was a pale imitation. One letter to management read as follows:
“However, I pray you do not rest peacefully at night dreaming of a world free of proxy fights; as should another shareholder determine to follow our lead, ‘shadow 13D’ our filing, and propose an alternative slate of directors, consider your eviction notice having been served.”
It is appears the market has bitch slapped Chapman and he is back on his heels heading into proxy season.
Take the Post’s story with a grain of salt, but it does not look good for Chap-Cap. But he certainly does not appear to be backing up his trash talking.
CHAPMAN FACING INNER TURMOIL
New York Post
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