================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. )*
Hudson Highland Group, Inc.
(Name of Issuer)
COMMON STOCK
(Title of Class of Securities)
443792106
(CUSIP Number)
October 10, 2006
(Date of Event Which Requires Filing of This Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[_] Rule 13d-1(b)
[X] Rule 13d-1(c)
[_] Rule 13d-1(d)
* The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
================================================================================
CUSIP No. 443792106 Page 2 of 9
Schedule 13G
--------------------------------------------------------------------------------
1 Name of Reporting Person:
Kensico Capital Management Corporation
I.R.S. Identification Nos. of Above Persons (entities only)
13-4079277
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group:
(a) [_]
(b) [_]
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Citizenship or Place of Organization:
Delaware
--------------------------------------------------------------------------------
5 Sole Voting Power
Number of 1,578,564
-------------------------------------------
Shares Beneficially 6 Shared Voting Power
Owned by -0-
-------------------------------------------
Each 7 Sole Dispositive Power
Reporting Person 1,578,564
-------------------------------------------
With 8 Shared Dispositive Power
-0-
--------------------------------------------------------------------------------
9 Aggregate Amount Beneficially Owned by Each Reporting Person:
1,578,564
--------------------------------------------------------------------------------
10 Check Box If the Aggregate Amount in Row (9) Excludes
Certain Shares:
[_]
--------------------------------------------------------------------------------
11 Percent of Class Represented by Amount in Row (9):
6.40%
--------------------------------------------------------------------------------
12 Type of Reporting Person:
CO
--------------------------------------------------------------------------------
CUSIP No. 443792106 Page 3 of 9
Schedule 13G
--------------------------------------------------------------------------------
1 Name of Reporting Person:
Michael Lowenstein
I.R.S. Identification Nos. of Above Persons (entities only)
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group:
(a) [_]
(b) [_]
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Citizenship or Place of Organization:
United States of America
--------------------------------------------------------------------------------
5 Sole Voting Power
Number of 1,578,564
-------------------------------------------
Shares Beneficially 6 Shared Voting Power
Owned by -0-
-------------------------------------------
Each 7 Sole Dispositive Power
Reporting Person 1,578,564
-------------------------------------------
With 8 Shared Dispositive Power
-0-
--------------------------------------------------------------------------------
9 Aggregate Amount Beneficially Owned by Each Reporting Person:
1,578,564
--------------------------------------------------------------------------------
10 Check Box If the Aggregate Amount in Row (9) Excludes
Certain Shares:
[_]
--------------------------------------------------------------------------------
11 Percent of Class Represented by Amount in Row (9):
6.40%
--------------------------------------------------------------------------------
12 Type of Reporting Person:
IN; HC
--------------------------------------------------------------------------------
CUSIP No. 443792106 Page 4 of 9
Schedule 13G
--------------------------------------------------------------------------------
1 Name of Reporting Person:
Thomas J. Coleman
I.R.S. Identification Nos. of Above Persons (entities only)
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group:
(a) [_]
(b) [_]
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Citizenship or Place of Organization:
United States of America
--------------------------------------------------------------------------------
5 Sole Voting Power
Number of 1,578,564
-------------------------------------------
Shares Beneficially 6 Shared Voting Power
Owned by -0-
-------------------------------------------
Each 7 Sole Dispositive Power
Reporting Person 1,578,564
-------------------------------------------
With 8 Shared Dispositive Power
-0-
--------------------------------------------------------------------------------
9 Aggregate Amount Beneficially Owned by Each Reporting Person:
1,578,564
--------------------------------------------------------------------------------
10 Check Box If the Aggregate Amount in Row (9) Excludes
Certain Shares:
[_]
--------------------------------------------------------------------------------
11 Percent of Class Represented by Amount in Row (9):
6.40%
--------------------------------------------------------------------------------
12 Type of Reporting Person:
IN; HC
--------------------------------------------------------------------------------
CUSIP No. 443792106 Page 5 of 9
Schedule 13G
Item 1(a). Name of Issuer:
Hudson Highland Group, Inc. (the "Company")
Item 1(b). Address of Issuer's Principal Executive Offices:
622 Third Avenue
New York, New York 10017
Item 2(a). Name of Persons Filing:
The Statement is filed on behalf of each of the following persons
(collectively, the "Reporting Persons"):
i) Kensico Capital Management Company ("Kensico Capital
Management");
ii) Michael Lowenstein ("Mr. Lowenstein"); and
iii) Thomas J. Coleman ("Mr. Coleman").
This statement relates to shares of Common Stock of the Company
held for the accounts of Kensico Partners, L.P., a Delaware
limited partnership ("Kensico Partners"), Kensico Associates,
L.P., a Delaware limited partnership ("Kensico Associates"), and
Kensico Offshore Fund, Ltd., a limited liability company organized
under the laws of the Cayman Islands, B.W.I. ("Kensico Offshore"
and, together with Kensico Partners and Kensico Associates, the
"Funds"). Kensico Capital Management serves as investment manager
to the Funds and, in such capacity, may be deemed to have voting
and dispositive power over the shares held for the accounts of the
Funds. Kensico Capital LLC, a Delaware limited liability company
("Kensico Capital"), serves as General Partner of the Funds, other
than Kensico Offshore. Mr. Lowenstein and Mr. Coleman serve as
Co-Presidents of Kensico Capital Management and are Managing
Members of Kensico Capital.
Item 2(b). Address of Principal Business Office:
For each Reporting Person:
Michael Lowenstein
Kensico Capital Management Corporation
55 Railroad Avenue, 2nd Floor
Greenwich, Connecticut 06830
Item 2(c). Citizenship:
See row 4 of each Reporting Persons' cover page.
Item 2(d). Title of Class of Securities: Common Stock
CUSIP No. 443792106 Page 6 of 9
Schedule 13G
Item 2(e). CUSIP Number: 443792106
Item 3. Not applicable.
Item 4. Ownership.
For each Reporting Person:
(a) Amount beneficially owned:
As of October 20, 2006, each of Kensico Capital Management,
Mr. Lowenstein and Mr. Coleman may be deemed to be the
beneficial owner of the 1,578,564 shares of Common Stock held
for the accounts of the Funds. Kensico Partners owns
beneficially 396,331 shares of Common Stock, Kensico
Associates owns beneficially 540,398 shares of Common Stock
and Kensico Offshore owns beneficially 641,835 shares of
Common Stock.
(b) Percent of class:
6.40% of the total outstanding shares of Common
Stock, from which Kensico Partners, Kensico
Associates and Kensico Offshore own 1.61%, 2.19% and
2.60%, respectively. This percentage is based upon
24,679,973 shares of Common Stock issued and
outstanding (the number of shares of Common Stock
reported in the Company's Form 10-Q filed August 9,
2006).
(c) Number of shares to which each Reporting Person has:
(i) Sole power to vote or direct the vote: 1,578,564
(ii) Shared power to vote or direct the vote: -0-
(iii) Sole power to dispose or to direct the
disposition of: 1,578,564
(iv) Shared power to dispose of or direct the
disposition of: -0-
Item 5. Ownership of Five Percent or Less of a Class.
Not Applicable.
Item 6. Ownership of More than Five Percent on Behalf of Another Person.
(i) The partners of Kensico Partners have the right to
participate in the receipt of dividends from, the proceeds
from the sale of, the shares held by Kensico Partners in
accordance with their partnership interests in Kensico
Partners.
ii) The partners of Kensico Associates have the right to
participate in the receipt of dividends from, or proceeds from
the sale of, the shares held by Kensico Associates in
accordance with the partnership of Kensico Associates.
CUSIP No. 443792106 Page 7 of 9
Schedule 13G
iii) The shareholders of Kensico Offshore have the right to
participate in the receipt of dividends from, or proceeds from
the sale of, the shares held by Kensico Offshore in accordance
with their ownership interests of Kensico Offshore.
Item 7. Identification and Classification of the Subsidiary Which
Acquired the Security Being Reported By the Parent Holding
Company.
Not Applicable.
Item 8. Identification and Classification of Members of the Group.
Not Applicable.
Item 9. Notice of Dissolution of a Group.
Not Applicable.
Item 10. Certification.
By signing below I certify that, to the best of my knowledge
and belief, the securities referred to above were not acquired
and are not held for the purpose of or with the effect of
changing or influencing the control of the issuer of the
securities and were not acquired and are not held in
connection with or as a participant in any transaction having
that purpose or effect.
CUSIP No. 443792106 Page 8 of 9
Schedule 13G
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: October 20, 2006
KENSICO CAPITAL MANAGEMENT CORPORATION
BY: /s/ Michael Lowenstein
--------------------------------------
Signature
Michael Lowenstein, Authorized Signatory
--------------------------------------
Name/Title
MICHAEL LOWENSTEIN
/s/ Michael Lowenstein
--------------------------------------
Signature
THOMAS J. COLEMAN
/s/ Thomas J. Coleman
--------------------------------------
Signature
CUSIP No. 443792106 Page 9 of 9
Schedule 13G
EXHIBIT 1
JOINT FILING AGREEMENT
Each of the undersigned hereby acknowledges and agrees, in compliance
with the provisions of Rule 13d-1(k) promulgated under the Securities Exchange
Act of 1934, as amended, that the Schedule 13G to which this Agreement is
attached as an Exhibit (the "Schedule 13G"), and any amendments thereto, will be
filed with the Securities and Exchange Commission jointly on behalf of the
undersigned. This Agreement may be executed in one or more counterparts.
Dated: October 20, 2006
KENSICO CAPITAL MANAGEMENT CORPORATION
BY: /s/ Michael Lowenstein
--------------------------------------
Signature
Michael Lowenstein, Authorized Signatory
--------------------------------------
Name/Title
MICHAEL LOWENSTEIN
/s/ Michael Lowenstein
--------------------------------------
Signature
THOMAS J. COLEMAN
/s/ Thomas J. Coleman
--------------------------------------
Signature