Chuck Royce Sells Two Stakes at End of June

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Jul 06, 2015
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At the end of June, guru Chuck Royce (Trades, Portfolio) sold out two of the stakes in his portfolio – GrafTech International Ltd (GTI, Financial) and UCP Inc (UCP, Financial).

Royce sold 6,038,607 shares of GrafTech, an Ohio-based manufacturer of carbon and graphite products for more than a century, for an average price of $4.96 per share. The sale had a -0.11% impact on Royce’s portfolio.

On Monday, GrafTech extended the expiration date for its merger agreement with BCP IV GrafTech Holdings LP and its subsidiary, Athena Acquisition Subsidiary Inc., to July 28. Originally, GrafTech’s agreement with BCP had been set to expire at midnight Monday.

Prior to the sale, GrafTech was Royce’s 13th-largest stake by volume. The stake had been in Royce’s portfolio since 2010.

GrafTech International has a market cap of $691.19 million and an enterprise value of $1.21 billion. It has a Price/Book of 0.7 and a Price/Sales of 0.7. Mario Gabelli (Trades, Portfolio), Richard Snow (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) have shares of GrafTech in their portfolios.

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Royce’s stake in UCP, a San Jose, California, homebuilder and land developer, was considerably smaller – 457,500 shares – and had been in his portfolio for a shorter period of time – since 2013. Royce sold it for an average price of $7.58 per share. That transaction had a -0.02% impact on his portfolio.

In the last five years, the price of a share of UCP has gone down by 45%.

UCP has a market cap of $60.13 million and an enterprise value of $289.16 million. It has a Price/Book of 0.7 and a Price/Sales of 0.3. Arnold Van Den Berg (Trades, Portfolio) and Third Avenue Management (Trades, Portfolio) have shares of UCP in their portfolios.

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