Eastman Kodak Co. shares surged 40% early Tuesday after the company said hedge fund D.E. Shaw has amassed a 5.2% stake.
D.E. Shaw, owned by legendary investor David Shaw, has built up a stake of 3.94 million shares, according to a Kodak filing with the U.S. Securities and Exchange Commission.
|KODK||EASTMAN KODAK CO.||7.36||+0.25||+3.52%|
The disclosure of the hedge fund’s investment comes nearly a month after the SEC said it was investigating the circumstances around a $765 million loan that was granted to the company to help it pivot into the pharmaceuticals business. Investigators are looking into how the loan was disclosed and the granting of stock options for some executives.
Kodak shares gained as much as 2,189% on July 29 when President Trump backed the company’s efforts to produce key ingredients for generic drugs as part of his plan to utilize the Defense Production Act to bring the manufacturing back to the U.S.
The stock finished at $33.20 the day of the White House’s announcement and was down to 82% from that peak at Monday’s closing level of $5.98.