Pirate Capital

Last updated
Pirate Capital
Company typePrivate
IndustryHedge Fund
Founded2002
HeadquartersNorwalk, CT
Key people
Thomas R. Hudson Jr (Founder)

Pirate Capital LLC was an American hedge fund. [1] The firm employed shareholder activism to push for structural changes in target companies. [1]

Contents

History

Pirate Capital was founded in 2002 by Thomas R. Hudson Jr with $2 million in savings. [2] Between 2002 and 2006, the hedge fund had joined the boards of eight companies. [3] In May 2005, Pirate had acquired nearly 2 million shares for a 14.8% stake in Cornell Companies, and subsequently nominated seven directors to the company's board. [4] In March 2006, the firm owned 5.8 million shares of Intrawest, and pressured the company to sell. Intrawest was later sold to Fortress Investment Group for $1.8 billion. [3] In June 2006, it pressured Mirant Corporation to drop its takeover bid for NRG Energy. [5] In October 2007, Pirate Capital threatened a proxy battle against Brink's unless the cash handling company adopted changes to its corporate governance. [6]

In September 2007, during the United States bear market of 2007–2009, Pirate Capital suspended redemptions on two of its four funds. [7] [1]

Investment strategy

Pirate Capital operated four funds including the Jolly Roger Activist Fund. [6] The fund purchases stakes in underperforming companies and then pushes for managerial action. [8] The company's motto is: "Surrender the Booty!" [9]

Key personnel

References

  1. 1 2 3 Corkery, Michael (February 25, 2010). "Pirate Capital Tom Hudson Sets Sail With A New Fund". WSJ.
  2. ↑ "The Man Behind Pirate Capital". DealBook. 2 February 2007. Retrieved 23 May 2024.
  3. 1 2 "Pirate scores big, hits rough water". Tampa Bay Times. No. 7 February 2007. Retrieved 23 May 2024.
  4. ↑ Greer, Jim (2 June 2005). "Cornell board surrenders to Pirate Capital". www.bizjournals.com. Retrieved 23 May 2024.
  5. ↑ "Mirant ends its $8 billion bid for NRG Energy". The Denver Post. 12 June 2006. Retrieved 23 May 2024.
  6. 1 2 Davies, Megan; Hamilton, Dane (1 October 2007). "Brink's shareholder calls for board rule change" . Retrieved 23 May 2024.
  7. ↑ Hamilton, Dane (11 September 2007). "Pirate Capital blocks investor exits" . Retrieved 23 May 2024.
  8. ↑ Boyd, Roddy (2006-09-29). "Staff Walks the Plank at Listing Pirate Capital". New York Post . Archived from the original on 2007-03-24. Retrieved 2007-05-25.
  9. 1 2 Effinger, Anthony; Burton, Katherine (2007-02-02). "Mutiny at Pirate Capital Roils Hudson After Worst Year Ever". Bloomberg L.P. Retrieved 2007-05-25.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.