Collery-Koffler Funds Get Stake in SCPIE

Hedge funds controlled by money managers Peter Collery and Neil Koffler acquired a 5% stake in SCPIE Holdings Inc., a Los Angeles-based provider of medical malpractice insurance whose shares have fallen 86% this year.

SC Fundamental, a New York investment advisory firm, acquired 492,300 shares through funds it controls as an investment, according to a Securities and Exchange Commission filing.

“The mistakes SCPIE made had a very significant impact on earnings for the past couple years but didn’t affect the book value of the company to any great extent,” Collery said. “For the stock to have gone down 80% is an overreaction.”

SCPIE rose 12 cents to $4.12 on the NYSE.