David Charney and Sky Wilber have stepped up their activist efforts with regard to Stewart Information Services Corp (NYSE:STC). According to a filing with the Securities and Exchange Commission, their fund Foundation Asset Management is seeking shareholder support to demand a special shareholder meeting, as it aims to replace two of the existing Directors with its own people. The fund currently holds 1.31 million shares of the company which account for 5.6% of its outstanding stock.
On June 14, Foundation Asset Management addressed the management of Stewart Information Services Corp (NYSE:STC) in a presentation, where it pointed out the fact that the company is lagging behind its peers as a result of poor management. The fund’s representatives proposed to either look for a new CEO or explore the possibility of a sale of the company.
Now Foundation Asset Management is looking to replace two of the company’s existing directors with Mr. Ernest D. Smith and Mrs. Roslyn B. Payne, and are calling for a special shareholder meeting. The Directors to be replaced are Malcolm S. Morris and Stewart Morris Jr. as the fund fears that their familial relationships with CEO Mathew W. Morris may have a negative impact on the company’s governance.
At the end of March, approximately 22% of Stewart Information Services Corp (NYSE:STC)’s common stock was held by 19 hedge funds in our database, unchanged during the first quarter. Phillip Goldstein, Andrew Dakos and Steven Samuels’ Bulldog Investors was among those betting on this stock, having indicated ownership of 1.13 million shares of it in its latest 13F filing. Jim Simons‘ Renaissance Technologies boosted its Stewart Information holding by 51% during the quarter, to 473,800 shares.
You can access the original SEC filing by clicking here.
Ownership Summary Table
|Name||Sole Voting Power||Shared Voting Power||Sole Dispositive Power||Shared Dispositive Power||Aggregate Amount Owned Power||Percent of Class|
|FOUNDATION OFFSHORE MASTER FUND, LTD||1,310,850||1,310,850||1,310,850||1,310,850||1,310,850||5.6%|
|FOUNDATION ASSET MANAGEMENT||1,310,850||1,310,850||1,310,850||1,310,850||1,310,850||5.6%|
|FOUNDATION ASSET MANAGEMENT GP II||1,310,850||1,310,850||1,310,850||5.6%|
|ERNEST D. SMITH||0%|
|ROSLYN B. PAYNE||0%|
Page 1 of 12 – SEC Filing
(Name, Address and Telephone Number of Person