Marcato Capital Management Files 13D on DineEquity ~ market folly

Wednesday, November 28, 2012

Marcato Capital Management Files 13D on DineEquity

Mick McGuire's hedge fund Marcato Capital Management just filed a 13D with the SEC regarding DineEquity (DIN).  Per the filing, they've revealed a 5.5% ownership stake in DIN with 1,021,486 shares.

This is not a new position for the fund as they owned 771,486 shares at the end of the third quarter.  As such, the amount of shares they own has increased by 32% over the past 2 months.  The majority of their purchases were made in late November at $62.52.

Marcato Capital Management initially disclosed its stake in DineEquity in the fourth quarter of 2011.  This latest 13D filing was required due to portfolio activity on November 27th.

Prior to founding his firm, McGuire worked at Bill Ackman's Pershing Square and so it should come as no surprise that he too is often involved in shareholder activism.  The 13D notes that McGuire has engaged DIN management and hopes to pursue discussions.

Per Google Finance, DineEquity "owns, operates and franchises two restaurant concepts in the casual dining and family dining categories of the restaurant industry: Applebee's Neighborhood Grill and Bar and International House of Pancakes (IHOP). The Company operates in four segments: franchise operations, company restaurant operations, rental operations and financing operations."

For more on this hedge fund, we posted up notes from McGuire's presentation at an investor conference where he talked about some of his other longs.

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