Pirate Capital Cuts Walter Industries (WLT) Stake Amid Hedge Fund Shake-Up

In an amended 13D filing on Walter Industries, Inc. (NYSE: WLT) late Friday, Pirate Capital disclosed a 7.3% stake (3.2 million share) in the company. This is down from the 3.7 million share stake the hedge fund disclosed in a quarterly filing with regulators.

The filing comes after news last week that half of Pirate's staff left or were dismissed. The news of the shake-up at the fund comes just weeks after Pirate came under SEC scrutiny for failing to promptly disclose changes in material holdings, including OSI Restaurant (NYSE: OSI) and FreightCar America (Nasdaq: RAIL) - positions the hedge fund closed out.

The filing on Walter Industries is interesting because it shows that Walter Industries may be one of the positions Pirate can do without as it streamlines the fund's operations.

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