GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Seth Klarman Buys 14% of Newly Formed Company Veritiv

August 09, 2014 | About:

Holly LaFon

267 followers

Seth Klarman (Trades, Portfolio), the value-driven founder of the Baupost Group, purchased 2,249,601 shares of Veritiv Corp. (VRTV), according to GuruFocus Real Time Picks. His holding represents 14.06% of the company, a filing from July 31 showed.

Veritiv’s stock began trading on the New York Stock Exchange in June, and its price has declined by 2.35% since. The price closed at $39.92 the date Klarman reported buying the stock, which is off of its 52-week high of $51.

Veritiv’s stock price history:

1407619806487.png

Veritiv is a business-to-business distributor, aiding with packaging, printing and other aspects of business operations in North America. It was created through the merger of xpedx and Unisource on July 1 and has a market cap of $618.4 million.

The company has not yet reported combined earnings but expects 2014 revenue in the range of $9 billion to $10 billion.

Other gurus that purchased the stock in the second quarter are Oakmark International Small Cap and Manning & Napier Advisors Inc. Brian Rogers (Trades, Portfolio) is shorting the stock.

Check out GuruFocus’ Real Time Picks, a Premium Feature which alerts you to real-time picks of investment gurus. Not a Premium Member of GuruFocus? Try it free for 7 days here!


Rating: 4.1/5 (8 votes)

Voters:

Comments

pravchaw
Pravchaw premium member - 2 months ago

Some errors in the article - you said, "Veritiv’s stock began trading on the New York Stock Exchange in June, and its price has declined by 2.35% since. The price closed at $39.92 the date Klarman reported buying the stock, which is off of its 52-week high of $51."

Stock started trading on July 2nd, 2014 not June as you state. Also the stock was nowhere near $51 and it has climbed since its IPO. Here is the chart from the company website.

I hope you have the rest of the article right.

guruhl
Guruhl premium member - 2 months ago

Thanks Pravchaw. It appears that the source I pulled the data from may be incorrect. Let us verify and get right back to you.

yanjimbo
Yanjimbo premium member - 2 months ago
Guruhl,

How do we know that Brian Rogers (Trades, Portfolio) is shorting the stock?

Thanks

mocheng
Mocheng premium member - 2 months ago

I have the same question, how do we know if Brian is shorting this stock?

yanjimbo
Yanjimbo premium member - 2 months ago

Or for that matter, how do we know the short positions of any fund or manager in the first place?

Vera
Vera premium member - 2 months ago
Hi Yanjimbo and Mocheng,

Brian Rogers (Trades, Portfolio)' portfolio data is obtained from the fund's website.

http://individual.troweprice.com/staticFiles/gcFiles/pdf/pheifq2.pdf

As of June 30, 2014, he owned -1,838 shares of Veritiv Corp Common Stock.

guruhl
Guruhl premium member - 2 months ago

According to the company, the June date reflects when the company was trading as VRTV-W, and July 2 is when it began regular way trading on the NYSE. The $51 high was likely from before the NYSE trading began.

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK