Form 4: Fund 1 Investments, LLC, Pleasant Lake Partners LLC, and PLP Funds Master Fund LP Report Changes in Beneficial Ownership of Tile Shop Holdings, Inc. (TTSH)

Fund 1 Investments, LLC, Pleasant Lake Partners LLC, and PLP Funds Master Fund LP reported transactions involving cash-settled total return swaps related to Tile Shop Holdings, Inc. common stock.

Summary

• Fund 1 Investments, LLC, Pleasant Lake Partners LLC, and PLP Funds Master Fund LP filed a Form 4 detailing changes in beneficial ownership of Tile Shop Holdings, Inc. (TTSH).
• The reporting persons are directors and 10% owners of the issuer.
• The transactions involve cash-settled total return swaps, providing economic exposure to TTSH common stock without direct ownership.
• As of April 22-24, 2025, the reporting persons entered into swap agreements for 10,000, 10,000 and 20,000 notional shares at prices of $5.5983, $5.7365 and $5.7724 per share respectively.
• The reporting persons indirectly own 11,781,826 shares and 1,002,207 shares of common stock through PLP Funds Master Fund LP and an additional private investment vehicle.
• The reporting persons disclaim beneficial ownership of the shares underlying the swap agreements, except to the extent of their pecuniary interest.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing detailing transactions. It doesn't convey strong positive or negative sentiment.

Future Outlook

The swap agreements will be automatically extended for successive 12 month periods unless one party provides written notice to the other party.

Industry Context

The use of cash-settled total return swaps is a common strategy employed by investment funds to gain economic exposure to a company's stock without direct ownership, allowing for leveraged returns and hedging strategies.

Comparison to Industry Standards

• Hedge funds and investment firms frequently use total return swaps to manage their exposure to various assets, including equities.
• The specific terms of these swaps, such as the notional amount and expiration date, are tailored to the investment objectives and risk tolerance of the fund.
• Similar strategies are employed by firms like Pershing Square Capital Management and Elliott Management Corporation, although the specific details of their swap agreements are not always publicly disclosed.

Key Dates

Keywords

beneficial ownership, Form 4, cash-settled total return swap, TTSH, Tile Shop Holdings, Fund 1 Investments, Pleasant Lake Partners, PLP Funds Master Fund, derivatives, equity, securities