Eric Mindich (Trades, Portfolio), founder of hedge fund Eton Park and famous for becoming at age 27 the youngest partner at Goldman Sachs, increased his stake in Riverbed Technology (RVBD, Financial) on Sept. 18, according to GuruFocus Real Time Picks.
Eton Park describes itself as a “global, multi-disciplinary,”¨ team-oriented investment organization with the goal of providing investors with superior, risk-adjusted returns over the long-term.”
Mindich purchased 6,050,000 shares, representing a 205.06% increase to his existing stake and rounding out his holding at 9 million shares in total. He has owned the stock since the second quarter of 2014, when the price averaged $20 per share. The price on Tuesday closed at $18.55 per share. Mindich’s holding gives him a 5.63% interest in the company.
Riverbed Technologies serves information technology companies in application performance infrastructure. In January, the company received an offer to be bought by hedge fund Elliott Management Corporation for $21 per share. The company ultimately rejected the offer on Feb. 28, saying “the proposal undervalues the company and is not in the best interests of shareholders.”
When Elliott issued another letter on May 27, Riverbed responded:
“As reflected in our press release dated May 22, 2014, the Riverbed board of directors is carefully evaluating the results of the 2014 Annual Meeting, and Riverbed will continue to engage with stockholders to understand their perspectives, concerns, and ideas for ways we can improve. Riverbed has maintained an open and constructive relationship with our stockholders. We appreciate and take seriously the input they have provided during the Annual Meeting process.”
Riverbed has seen dramatic growth in recent years, with revenue growing at an annual rate of 22.8%, EBITDA at 42.6%, free cash flow at 19.1% and book value at 20.4%.
Riverbed has a P/E ratio of 141.1, P/B ratio of 3.63 and P/S ratio of 2.9%.
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