Marcato Capital Management Reveals Cincinnati Bell (CBB) Stake ~ market folly

Wednesday, October 31, 2012

Marcato Capital Management Reveals Cincinnati Bell (CBB) Stake

Mick McGuire's hedge fund firm Marcato Capital Management has filed a 13G with the SEC pertaining to shares of Cincinnati Bell (CBB).  Per the filing, they have revealed a brand new position in CBB representing 7.19% ownership in the company with 14,192,985 shares.

The 13G was required due to portfolio activity on October 25th that brought them above the 5% ownership threshold where it's necessary for them to publicly disclose their stake.

This makes Marcato one of the largest institutional shareholders of CBB, along with Lonestar Capital Management.  An analyst at Lonestar pitched CBB in the Value Investing Congress investment idea contest and was a finalist.

It's also worth pointing out that CBB was one Ted Weschler's holdings at his old hedge fund that is now closed.  Weschler of course has been a portfolio manager at Warren Buffett's Berkshire Hathaway for a while now.  However, Berkshire has not invested in CBB.

Per Google Finance, Cincinnati Bell "is a full-service provider of data and voice communications services over wireline and wireless networks, a full-service provider of data center colocation and related managed services, and a reseller of information technology (IT) and telephony equipment. The Company provides telecommunications service to businesses and consumers in the Greater Cincinnati and Dayton areas on its owned wireline and wireless networks. The Company also provides business customers with outsourced data center colocation operations and related managed services in data center facilities."

For more from this manager, be sure to check out his presentation at the Value Investing Congress on 3 ideas with hidden value.

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