Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Activist Dan Loeb Bought More Sotheby’s, Just Sent This Letter to Their CEO

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.

what is a hedge fund

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.

Third Point, Sothebys, EX-99.3

Disclosure: none

Recommended Reading:

Carl Icahn’s Best Pick Isn’t Apple; These Stocks Are

Buffett’s $2.15 Billion Payday

Hedge Fund News: George Soros, Jeffrey Ubben & Paul Singer’s Accord

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.