John Thaler’s JAT Capital Management recently disclosed, with the SEC, another increase in its exposure to The Madison Square Garden Co (NASDAQ:MSG). The fund declared ownership of 4.93 million shares of Class A Common Stock, up from the 4.28 million shares last revealed – and triple in comparison with 1.64 million shares held by the end of the second quarter of 2014. This stake accounts for approximately 7.75% of the company’s outstanding stock, and makes JAT Capital Management the largest hedge fund shareholder – amongst those that we track.
A few weeks ago, the fund already disclosed a marked increase in its bet on The Madison Square Garden Co (NASDAQ:MSG), and expressed its intention to engage in discussions with the company’s Board of Directors and management, regarding the creation of long-term value for shareholders.
Mr. Thaler said he considers the stock to be cheap, and plenty of value could still be unlocked. However, he also assured that he does not intend to acquire a controlling interest in the company, nor push for a merger.
Unlike JAT Capital Management, which just recently went activist, Christian Leone’s Luxor Capital Group, the second largest hedge fund shareholder of record, last disclosed a passive stake in The Madison Square Garden Co (NASDAQ:MSG), with approximately 4.88 million shares. This position, worth more than $300 million, accounts for more than 7.6% of the company’s outstanding stock.
Other major institutional investors betting on The Madison Square Garden Co (NASDAQ:MSG) are Mario Gabelli’s GAMCO Investors and John W. Rogers’ Ariel Investments. After increasing their stakes in the company, these funds own 2.95 million shares and 2 million shares, respectively.
The Madison Square Garden Co (NASDAQ:MSG) is a $5.1 billion market cap integrated sports, entertainment and media business company. Its sporting division includes the New York Knicks and the New York Rangers (hockey club); its sport programming business, the MSG Network; and its entertainment segment, the Madison Square Garden Arena, the Radio City Music Hall, and the Beacon Theatre, amongst others.
Also recently, the company appointed a new CFO and Executive Vice President: Sean Creamer. Mr. Creamer had previously served as Arbitron Inc’s President, and joined The Madison Square Garden Co (NASDAQ:MSG)’s team in September 1. According to the company, the new CFO should help create value and explore new business opportunities.
Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned.