Ramius Capital Group Buys Drug Companies, Moves out of ETFs

September 14th, 2009
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Ramius Capital Group’s most recent portfolio holdings reveal that the hedge fund manager has shifted its portfolio focus to drug manufacturers. The firm’s exposure to US Equity as of June 30th was $366mm, which is down from $788mm at the end of last year. Of the $136.41mm in added positions over the second quarter, $92.62mm was spent by Ramius Capital on healthcare giants Wyeth (WYE) and Schering Plough (SGP). At the same time, the hedge fund dumped its ETFs and opted for investing in individual equities, selling out of its entire $44.21mm of SPDR S&P 500 ETF (SPY) as well as $22.58mm of SPDR Energy Sector (XLE). Overall, Ramius sold $92.54 in ETFs over the quarter.

Heeding the widespread call for future rebounds in commodity prices, Ramius Capital opened two new oil company positions and a coal company position. Also in line with the rest of the firm’s portfolio, two new information technology companies were added. The largest newly opened positions include
- Metavante Technologies Inc (MV): $10.1mm, 392,255 shares, 0.3% held, Change: $10.1mm / 392,255 shares
- Foundation Coal Holdings Inc (FCL): $6.6mm, 236,000 shares, 0.5% held, Change: $6.6mm / 236,000 shares
- Petro-Canada (USA) (PCZ): $6.4mm, 166,100 shares, 0.0% held, Change: $6.4mm / 166,100 shares
- InterOil Corporation (USA) (IOC): $6.2mm, 211,194 shares, 0.7% held, Change: $6.2mm / 211,194 shares
- Data Domain Inc (DDUP): $5.7mm, 171,350 shares, 0.3% held, Change: $5.7mm / 171,350 shares

Overall, Ramius Capital’s portfolio is weighted towards the healthcare and information technology sectors, with holdings in the top 10 totaling $99.59 and $58.95mm respectively. As a percentage of the portfolio, the healthcare sector accounts for 30.9% and information technology accounts for 15%. As of 6/30/2009, Ramius Capital’s top 10 holdings were:
- Wyeth (WYE): $61.7mm / 1,359,900 shares, 0.1% held
- Schering Plough Corp (SGP): $37.9mm / 1,507,270 shares, 0.1% held
- CPI Corp (CPY): $27.4mm / 1,612,909 shares, 23.0% held
- Actel Corp (ACTL): $25.2mm / 2,353,015 shares, 9.0% held
- Agilysys Inc (AGYS): $12.7mm / 2,703,991 shares, 12.0% held
- Scientific Games Corp (SGMS): $10.8mm / 682,550 shares, 0.7% held
- Tollgrade Communications Inc (TLGD): $10.3mm / 1,963,175 shares, 15.5% held
- Metavante Technologies Inc (MV): $10.1mm / 392,255 shares, 0.3% held
- M & F Worldwide Corp (MFW): $7.0mm / 347,800 shares, 1.8% held
- Foundation Coal Holdings Inc (FCL): $6.6mm / 236,000 shares, 0.5% held

Ramius Capital’s top five buys included:
- Wyeth (WYE): Change: $57.7mm / 1,271,300 shares
- Schering Plough Corp (SGP): Change: $34.9mm / 1,389,770 shares
- Metavante Technologies Inc (MV): Change: $10.1mm / 392,255 shares
- Foundation Coal Holdings Inc (FCL): Change: $6.6mm / 236,000 shares
- Petro-Canada (USA) (PCZ): Change: $6.4mm / 166,100 shares

Whereas top five sells included:
- Standard & Poors Depository Receipt Trust (SPY): Change: $-44.2mm / -555,942 shares
- SPDR Energy Sector (XLE): Change: $-22.6mm / -470,400 shares
- Orthofix International N.V. (OFIX): Change: $-18.0mm / -973,980 shares
- Crown Holdings Inc (CCK) : Change: $-10.1mm / -417,425 shares
- Market Vectors Agribusiness ETF (MOO): Change: $-9.9mm / -350,000 shares

Ramius Capital Group was founded in 1994 by Peter Cohen, a former Chairman and CEO of Shearson Lehman Brothers. Following the firm’s announced merger with boutique investment bank Cowen Group, which is expected to be finalized during Q4 2009, Ramius Capital is expected to adopt the Cowen Group Inc name.

On the activist front, the firm recently failed to win board seats at photography company CPI Corp (CPY). Ramius was also part of a long-standing proxy battle with telecommunications company Tollgrade (TLGD) in which it succeeded in adding three members to the company’s board in early August.

For more information on Ramius Capital, please click here. For more information on other top hedge funds and portfolio managers, please visit, HedgeTracker’s Complete Hedge Fund Directory
For Detailed Investor Profiles on these Investors, click below:
Ramius Capital Group
Related People: Jeffrey Smith; Jeffrey Solomon; Mark R. Mitchell; Morgan Stark; Peter Cohen; Thomas Strauss
Related Entities: Cowen Group Inc. (NASDAQ: COWN); Ramius Alternative Investments; Ramius Credit Fund; Ramius Enterprise LP; Ramius Intermediate Fund; Ramius Multi-Strategy Fund; Ramius Value and Opportunity Fund
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Top Hedge Fund Portfolio Reports

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