After holding 13 million shares since the IPO, why did Blue Ridge sell its entire position now?
The question's reasonably important because BR is more like a half Institution / half Insider, rather than just a straight-up Institution, so the usual concerns attaching to an Insider selling at least partially apply here.
(There's been other threads devoted to the Insider half of BR, but off the top of my head: around before the IPO, power to name 1 or 2 members on the Bd/Dir's for all XIN companies, at least until recently, received stock options like corporate officers, loan arrangements treated as self dealing transactions, probably some others).
@Star, what you've found are 13G's. Don't worry about them.
The filing nuances between 13D's, 13F's and 13G's are subtle and confusing, even to attorneys. 13G's are designed to be an additional filing requirement above the normal 13D's and 13F's, to warn a company when a buyer has amassed 20% of its stock and therefore represents a takeover risk.
The confusion shines through on that filing, since at only 18% ownership of XIN, no 13G was required.
I'm not trying to confuse anyone or hide the ball here. If you go over to my newer thread on "Blue Ridge's 13F Filings," I'll guide you to what is definitely "our" Blue Ridge, the entity that owned 11+ million shares of XIN on June 30th, then none on Sept 30th.
Since I think we agree there was only one 11+ million (whatever the exact number is) share owner of XIN, then we've found "our" Blue Ridge.
Who sold XIN? Blue Ridge Capital...or Blue Ridge China Partners LP?
Can BRC continue as an entity and BRCP LP wrap things up?
Does Blue Ridge China Partners LP, which has 1/2-1 billion in assets and several hundred limited partners with min $5 million invested, have a dissolve date? How about the ability of the limited partners to cash out of the partnership? How much of BRCP LP assets are liquid?
Alright, let's work this out. I think our only two finalists for "who owned the XIN shares?" are Blue Ridge Capital L.L.C., the second from the bottom of the following list, and, as you've noted, "0001056258 BLUE RIDGE CAPITAL HOLDINGS LLC/BLUE RIDGE CAPITAL OFFSHORE HOLDINGS LLC" from the middle of the list. Agreed so far?
Companies with names matching "BLUE RIDGE CAPITAL"
Click on CIK to view company filings
Items 1 - 8
CIK Company State/Country
0001232960 AFTON CAPITAL MANAGEMENT LLC
formerly: BLUE RIDGE CAPITAL MANAGEMENT LLC (filings through 2003-11-06)
SUGAR CREEK PARTNERS LLC (filings through 2004-08-12)
0001358863 BLUE RIDGE CAPITAL HOLDINGS LLC NC
0001387368 Blue Ridge Capital Holdings LLC NY
0001056258 BLUE RIDGE CAPITAL HOLDINGS LLC/BLUE RIDGE CAPITAL OFFSHORE HOLDINGS LLC
formerly: JAG HOLDINGS LLC (filings through 2005-05-10)
0001487464 Blue Ridge Capital Holdings, LLC NC
0001383403 Blue Ridge Capital Offshore Holdings LLC NY
0001062589 Blue Ridge Capital, L.L.C. NY
0001274963 BLUE RIDGE VENTURE CAPITAL CORP
As I mentioned earlier (and you can confirm with some legwork), they lost their board member as of the last annual meeting, so technically they were not an insider anymore. I also still believe that it is likely that they were liquidating to meet redemptions for their private equity fund, although I have no proof of such information -- it is my speculation. My facts supporting that belief are not as strong as my analysis that they were selling out, which was 100% spot on.
Net net, them selling out is a good thing IMO. Clears out a major overhang.
OK, but if your whole "the BR fund has a death date and that's why it's closing its positions" theory is right, wouldn't BR need to sell ALL its positions?
If you look at BR's 13F filed yesterday, you'll see that it still holds 35 positions, most of them infinitely larger, dollar wise, than its XIN position. No honest assessment of that list could lead a person to conclude this is a fund whose death is imminent.
If this is a death date thing, why didn't BR sell those other positions?
There's also a second objection making the super happy, "they still LOVE XIN, but were forced to sell against their will" theory difficult to believe is that if a death date for the sale of those shares existed, disclosure of that fact would've been required in the S-1 / 20-F's, from the IPO through now.
I realize you may know this already. If what you're looking to do here is use the spin story to confuse people or prevent them from looking into the real reason why BR sold (which I don't know), just tell me that, so I can at least stop writing posts to correct something you already know is wrong.
I'm not a big fan of seeing bulletin boards used for disinformation, but I think I'd be willing to look the other way this one time. It's easier than writing 10 versions of this post per day.