Soros Fund Management Cuts Stake in Quantum Corporation

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Soros Fund Management, the investment management firm headed by billionaire investor George Soros reduced its stake in Quantum Corporation, an archive and data protection, scale-out storage solutions provider.

Based on its 13G filing with the Securities and Exchange Commission (SEC), Soros Fund Management currently owns 3,266,666 shares or 1.25% of the outstanding common stock ofQuantum Corporation.

The investment management firm previously held 5,366,666 shares or 2.05% of the outstanding common stock of the company based on its 13F filing in the second quarter of this year. Soros Fund Management was one of the top institutional investors of Quantum Corporation.

George Soros’ recent investment

Soros recently invested in real estate and real asset investment management businesses through Tunbridge Partners.

Quantum Strategic Partners, a fund managed by Soros Fund Management together with Pine Brook Partners provided $500 million capital for Tunbridge Partners.

Tunbridge Partners is led by its Chairman Brian Finn, Portfolio Manager Sean Gallary, and Hodes Weill & Associates, a real estate advisory firm.

Last month, it was reported that Soros Fund Management invested in TruMid, a new bond-trading startup.

Quantum Corporation stock performance

Quantum Corporation traded between $0.69 per share and $2.22 per share over the past 52 weeks. The company lost more than 56% of stock value year-to-date. The company has $187.13 million market capitalization. Its stock closed $0.76 per share, up by more than 5% on Wednesday.

On Tuesday, Quantum Corporation announced that it repaid approximately $81 million in convertible noted due on November 15, 2015, at par, and around $1 million in interest.

The company used $66 million from its revolving $75 million credit facility with Well Fargo Capita Finance to repay the notes. It also used around $16 million out of its more than $60 million total cash on hand to cover $15 million in notes plus interest.

Quantum Corporation will repay holders of the remaining $3 million worth of convertible notes not later than the November 15 maturity date.

Additionally, the company expected to report total revenue in the range of $116 million to $118 million for its fiscal second quarter ended September 30. Its expectation was 2% to 3% below its previous guidance of around $120 million to $13 million.

Furthermore, Quantum Corporation announced that it received a notice from the New York Stock Exchange (NYSE) that it no longer in compliance with its continued listing standard. Its stock will remain listed on the stock exchange this six-month period, subject to compliance with other NYSE continued listing requirements.

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