Quinpario Partners Activist At Zoltek [Case Study]

Quinpario Partners Activist At Zoltek [Case Study]

Sign up for our free daily newsletter to stay in the activist investor know. Courtesy of the Alternative Activist. Case study from 1Q13.

Snapshot of Zoltek and activist performance for Quinpario Partners.

Quinpario Partners filed a 13D full of valuable information, with a lengthy shareholder letter and a presentation detailing Zoltek’s underperformance and its intent to overthrow the entire board through a special meeting with shareholders. Quinpario Partners is not a traditional activist fund. It was founded by former senior executives of Solutia, another specialty chemicals company that was sold to Eastman Chemical for $3.5 billion in 2012 (and at an acquisition premium of 64% from the one month prior trading price). Given their expertise in the specialty chemicals business, the Quinpario team was acutely aware of product and industry potential not being achieved by Zoltek management and laid out a very convincing case. Quinpario even unveiled that it made an acquisition offer “in the mid-teens” a few months earlier, representing a significant premium above the current price per share of $8.82. The Zoltek play was already a no-brainer, but if that wasn’t enough, Quinpario’s prescient timing of the 13D filing coincided with its only other activist target, Ferro Corporation (yet another specialty chemicals company), receiving a buyout offer on the same exact day for a 40% gain in less than 2 months of activist campaigning.

Bonhoeffer Fund July 2022 Performance Update

Screenshot 27Bonhoeffer Fund's performance update for the month ended July 31, 2022. Q2 2022 hedge fund letters, conferences and more The Bonhoeffer Fund returned 3.5% net of fees in July, for a year-to-date return of -15.8%.   Bonhoeffer Fund, LP, is a value-oriented private investment partnership for . . . SORRY! This content is exclusively for Read More

As for Zoltek…

  1. The underperformance was inherent in its metrics and valuation. The lo