John Thaler’s JAT Capital has revealed in a recent filing with the Securities and Exchange Commission boosting its stake in The Madison Square Garden Co (NASDAQ:MSG) to 6.73% of the company’s outstanding Class A stock. JAT Capital currently owns around 4.28 million class A shares of The Madison Square Garden, versus 1.64 million shares revealed in its latest 13F filing. Moreover, the stake is activist by nature and the fund expressed its intention to engage in discussions with the company’s Board of Directors and management regarding the achievement of a long-term value for shareholders.
According to the filing, JAT Capital stated that they might consider to engage in “constructive” discussions and will provide recommendations on how the company can increase its value. Among the institutional investors that filed their 13F forms for the last semester, JAT Capital is now the third largest shareholder in Madison Square Garden. Another fund that we track, which owns a significant position in The Madison Square Garden Co (NASDAQ:MSG) is Christian Leone‘s Luxor Capital Group. Luxor revealed in its latest 13F ownership of around 4.88 million shares, which give it a stake of 7.67%. However, according to a previous filing, Luxor holds a passive stake in the company.
The stock of The Madison Square Garden Co (NASDAQ:MSG) jumped on the back of the news and climbed almost 4% since JAT Capital disclosed its stake. Overall, since the beginning of the year, shares of The Madison Square Garden Co (NASDAQ:MSG) gained around 14%. The company is engaged in sports, and media segments, conductiong its operations through direct and indirect subsidiaries. Among others, MSG owns the New York Knicks basketball team and New York Rangers hockey team.
For its fiscal 2014, ended on June 30, The Madison Square Garden Co (NASDAQ:MSG) reported a 16% growth in revenue on the year to $1.56 billion. However, its net income declined by 19% on the year and amounted to $115.1 or $1.47 per share. Moreover, Madison Square Garden trails a P/E of around 37.00, which is more than double than the industry average.