Shares of Deckers jumped another 6.6 percent, to close at
$52.28, bringing its two-day gain to more than 16 percent
following Marcato Capital Management’s disclosure
that it owns 6 percent of the stock. The footwear maker also
becomes the newest activist target of the San Francisco hedge
fund firm headed by Mick McGuire III. It is also the latest
example of an activist carefully not telegraphing a future
Marcato did not own any shares of the company as of the
third quarter, the last period for which an equity investor was
required to publicly disclose their quarterly positions. The
fourth-quarter report is due to be filed by Tuesday, February
14. But even that filing wouldn’t make a
difference. Marcato disclosed in its 13D filing it bought its
entire stake of roughly 1.9 million shares during the first
week of February.
In its regulatory filing, Marcato does not lay out specific
suggestions or plans for Deckers. Rather, it just uses standard
boiler-plate language to say the stock is cheap and it intends
to speak with management and the board of directors. Stay tuned
for this one.
Marcato earlier this week nominated four people to the board
Buffalo Wild Wings, including McGuire.
Blackstone Group has raised $1.5 billion for a new fund
that will seed new hedge funds, according to
Bloomberg. Strategic Alliance Fund III is much smaller than
its predecessor fund, which raised $2.4 billion in 2011,
according to the report. One potential challenge: If President
Trump and Congress scrap the Dodd-Frank law and the Volcker
Rule, the big investment banks will no doubt re-create their
proprietary trading desks, which will directly compete with
hedge funds and the overall talent pool.
Omega Advisors’ Leon Cooperman, who has been
charged with engaging in illegal insider trading violations and
other securities violations by the Securities and Exchange, has
invoked his Fifth Amendment right in his dealings with the
regulator. The reason: he did not want to incriminate himself
since he faces a parallel criminal investigation, according to
we reported earlier, this was precisely the reason why many
lawyers believe Cooperman won’t testify in his own
defense when his civil trial with the SEC gets underway,
probably later this year. Bloomberg reports that word about
Cooperman’s decision not to testify on his behalf
came up during a hearing on Tuesday in a Philadelphia federal
court, when his lawyer tried to get the case thrown out. "He
made clear he wanted to testify, but for my advice that there
was a parallel case," Cooperman’s lawyer Ted Wells
reportedly said in court.
Rail-Splitter Capital Management cut the value of its U.S.
stock portfolio to $134 million at the end of the fourth
quarter, from $358 million the previous quarter. The
Rail-Splitter Fund fell more than 3 percent in the fourth
quarter, bringing its loss for the year to about 13 percent.
This followed low single-digits returns in each of the two
previous years. Rail-Splitter was founded by John Croghan, a
founder and former chairman of Lincoln Capital Management, a
long-only investment management firm, and Richard Fradin, a
former principal at William Blair & Co.