Daniel Och’s Oz Management reduced its stake in Rockwood Holdings (ROC) by a staggering 42%. The fund now holds 2.49 million shares, down from 4.31 million. The fund is still the third largest stakeholder in Rockwood Holdings, which comprises 3.5% of its portfolio. This news comes after the fund expanded its stake dramatically in mid-July, from holding 100 to 4.31 million shares. Rockwood Holdings announced it would merge with Albermarle Corporation (ALB), which will control management of Rockwood Holdings.
It is likely Oz made this move to take gains on the spike in shares that usually happens when companies are acquired. Rockwood Holdings trades at a rich valuation of 80 times earnings, so it might have been a good idea to go while the getting was good. However, Oz still has a stake to play with if the acquisition turns out to be a boon.