market folly

Jonathan Auerbach's hedge fund Hound Partners just filed a Form 4 with the SEC regarding shares of Network 1 Security Solutions (NSSI). Per the filing, we see that Hound Partners sold 64,815 shares of NSSI at a price of $1.60 on October 14th and 15th. The hedge fund's various investment vehicles still own a substantial amount of shares though as Hound Partners Offshore Fund retains 1,130,253 shares, Hound Partners LP holds 786,784 shares, and Hound Partners LLC owns 214,731 NSSI shares.

In the past, we've covered Hound Partners' position in NSSI and revealed that they also own NSSI warrants with a conversion price of $2.00 and an expiration date of April 16th, 2012. Hound is a New York based firm founded by Auerbach and seeded by Tiger Management's Julian Robertson. As such, it is referred to as one of the 'Tiger Seeds.'

Taken from Google Finance, Network 1 Security Solutions is "engaged in the acquisition, development, licensing and protection of its intellectual property. It owns six patents issued by the United States Patent Office that relate to various telecommunications and data networking technologies and include, among other things, patents covering the control of power delivery over local area networks (LANs) for the purpose of remotely powering network devices over Ethernet (PoE) networks and systems and methods for the transmission of audio, video and data over LANS."

To see what other hedge funds are investing in, scroll through our recent coverage.