Oil States International Inc. (OIS): Atlantic Investment Management Heightens Activist Stake By 15%

Alexander Roepers’ Atlantic Investment Management disclosed on Tuesday a 15% increase in its exposure to Oil States International, Inc. (NYSE:OIS). The stake, which has an activist nature, now comprises 2.73 million shares of Common Stock, which account for 5.1% of the company’s shares outstanding.

Atlantic Investment Management is a New York-based alternative equity investment firm, founded and run by Alex Roepers since 1988. The firm “is a constructively engaged shareholder seeking to unlock value as a significant minority owner in its portfolio companies.” Its main strategy involves buying large number of shares, as much as 7% of outstanding shares of mid cap stocks, it makes no use of leverage or leverage trading products and its main focus is on fundamental value. As of June 2014, the firm had approximately $2.3 billion in assets under management, and an equity portfolio worth more than $1.5 billion.

Oil States International, Inc. (NYSE:OIS) is a $2.54 billion market cap provider of specialty products and services to oil and gas drilling and production companies throughout the world. According to the Schedule 13D form filed by Atlantic Investment Management, the firm added, between October 7 and December 1, inclusive, a total of 360,475 shares to its holdings. Most of the shares were actually acquired on December 1, when the fund bought 400,000 shares for $47.62 per share. Before that, between October 7 and November 24, the fund had made 18 other transactions, both purchases and sales, which resulted in the sale (in aggregate) of 39,525 shares. This is how the total of 360,475 shares was reached.

Atlantic Investment Management’s current stake, with 2.73 million shares, makes it the largest institutional investor in Oil States International amongst those we track. It just displaced David Einhorn’s Greenlight Capital, which last disclosed (by the end of the third quarter) ownership of 2.7 million shares. Another major fund betting on the company is Chuck Royce’s Royce & Associates, which owns 1.35 million shares, worth about $83 million.

Mr. Roeper’s fund is also bullish on Owens-Illinois Inc (NYSE:OI). A couple of months ago, it disclosed having boosted its exposure to the company, and holding 11 million shares, which represented about 6.7% of the outstanding Common Stock.

Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned.