Marcato Capital Starts LPL Financial Stake ~ market folly

Tuesday, September 22, 2015

Marcato Capital Starts LPL Financial Stake

Mick McGuire's activist hedge fund Marcato Capital has filed a 13D with the SEC regarding shares of LPL Financial (LPLA).  Per the filing, Marcato now owns 6.3% of the company with over 6 million shares.

This is a newly disclosed position for the firm as they did not own any shares at the end of the second quarter.  The filing was made due to activity on September 21st.

McGuire's firm was out buying shares in late August and throughout September at prices between $39.10 and $42.94.  Shares currently trade around $42.50.

The 13D contains the typical activist boilerplate that they may engage management, etc.

We've covered other previous portfolio activity from Marcato here.

Per Google Finance, LPL Financial is "an independent broker-dealer, a custodian for registered investment advisors (RIAs) and an independent consultant to retirement plans. The Company provides a platform of brokerage and investment advisory services to independent financial advisors, including financial advisors at around 700 financial institutions, enabling them to provide their retail investors with objective financial advice. It also supports approximately 4,400 financial advisors who are affiliated and licensed with insurance companies through customized clearing services, advisory platforms, and technology solutions. It provides its advisors with the front-office, middle-office, and back-office support. The Company provides its technology and service to advisors through a technology platform that is server-based and Web-accessible. Its subsidiaries include LPL Financial LLC, The Private Trust Company, N.A., Independent Advisers Group Corporation and LPL Insurance Associates, Inc."

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