Activist Dan Loeb: Sothebys (NYSE:BID) recently saw a boost in the equity portfolio of Dan Loeb’s hedge fund Third Point. In a filing with the SEC, Third Point disclosed ownership of almost 6.4 million shares, which represent 9.3% of the company. Third Point is now Sothebys largest shareholder. The previous stake contained around 3.9 million shares, equal to 5.7% of the company. The value of the new position held by Third Point in Sothebys amounts to almost $315 million as of current market prices.
Also, Third Point sent a letter to William F. Ruprecht, the CEO, Chairman and President of Sothebys, in which it expressed its concern regarding the strategic direction and leadership of the company, among other things. Basically, Loeb considers that Sotheby’s has weak operating margins and a competitive disadvantage in front of its auction house peer Christie’s. Take a look at the full letter below.
In addition to Loeb, we should mention some other “hedgies” that have been bullish on the company, according to our database. Royce & Associates, managed by Chuck Royce, held a stake that contained around 3.7 million shares, followed by John W. Rogers’s Ariel Investments, with an ownership of some 3.1 million shares. At the same time, Ken Fisher’s Fisher Asset Management and Nelson Peltz’s Trian Partners hold less significant positions, which contain around 2.1 million shares each.