Marcato Capital Management Discloses Sotheby's Stake ~ market folly

Tuesday, July 30, 2013

Marcato Capital Management Discloses Sotheby's Stake

Mick McGuire's hedge fund firm Marcato Capital Management today revealed a 6.61% ownership stake in Sotheby's (BID) with 4,511,719 shares, per a 13D filed with the SEC.  This is a brand new position for the hedge fund.

While they own common stock, the filing also highlights that the figures above are inclusive of stock options to purchase shares that are exercisable within the next 60 days.

The fine print of their filing contains the standard boilerplate, noting that they think the company is undervalued and may enter into discussions with the company.

The filing was required due to portfolio activity on July 23rd.

Per Google Finance, Sotheby's is "a global auctioneer of authenticated fine art, decorative art, and jewelry. The Company operates in three segments: Auction, Finance, and Dealer. The Company's Auction segment functions as an agent by offering works of art for sale at auction and by brokering private sales of artwork. Sotheby’s also purchases and resells works of art through its Dealer segment, conducts art-related financing activities through its Finance segment and is engaged, to a lesser extent, in brand licensing activities. The Sotheby’s name is also licensed for use in connection with the art auction business in Australia, art education services in the United States and the United Kingdom and print management services."

Mick McGuire will also be speaking at the Value Investing Congress in a few months if you want to hear his latest investment ideas.  Market Folly readers receive a discount to the event by clicking here.

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