Griffin’s Blue Ridge Discloses 6% Stake in Colfax Corporation

Griffin's Blue Ridge Discloses 6% Stake in Colfax Corporation


John Griffin’s Blue Ridge Capital, L.L.C. has disclosed a 5.73% stake in Colfax Corporation (NYSE:CFX), according to a 13-G just filled with the Securities and Exchange Commission (SEC). Firms are usually required to file a 13-G when they purchase more than 5% of a company’s shares. The value oriented hedge fund has over $7 billion in assets under management (AUM). The total dollar value of the stake in Colfax Corporation is approximately $140 million. Blue Ridge owns 5,370,000 shares of Colfax.

This is the first large purchase by Griffin’s hedge fund, since the fund disclosed a $170 million stake in Martin Marietta Materials Inc (NYSE:MLM). We noted at the time that David Einhorn had very negative comments about MLM. David Einhorn and John Griffin are close friends according to our sources.

Colfax Corporation is a Fulton, MD, which manufactures and sells gas-and fluid-handling and fabrication technology services and parts to Governments. A big investor in the company is Ron Baron, whose BARON GROWTH FUND has a 2% stake in the company.

The company has a market capitalization of $2.54 billion. Enterprise value is $3.7 billion. However, the quick ratio of the company is close to 2.0, as most of the debt is long term.

The forward price earnings ratio (PE) is 12.67. The company trades at price to book ratio of 1.28.

Colfax will be reporting second quarter earnings next week. Analysts expect the company to earn 0.36 cents a share on revenue of $1.02 billion. 2012 earnings consensus estimates come in at $2.19 a share.

Colfax Corporation was up 0.19 (or .071%) to $27.13 a share in Monday’s trading session.