Scout Capital Goes Activist on Tim Hortons, Boosts Position ~ market folly

Tuesday, June 18, 2013

Scout Capital Goes Activist on Tim Hortons, Boosts Position

Adam Weiss and James Crichton's hedge fund firm Scout Capital has filed a 13D with the SEC regarding shares of Tim Hortons (THI).  Per the filing, Scout has revealed a 5.5% ownership stake in with 8.4 million shares.

This marks a 271% increase in their position size since the end of the first quarter as they only owned 2.26 million shares then.  The 13D was filed due to portfolio activity on June 6th.

The fine print of the filing also outlines what Scout is trying to accomplish with their new activist position:

Scout has "engaged and expect to continue to engage in discussions with senior management of the Issuer with respect to the Issuer’s optimal capital structure, capital expenditures, timing and magnitude of share repurchases, management compensation metrics, and technology investments, among other matters."

Per Google Finance, Tim Hortons is "a quick service restaurant in North America. The Company’s menu includes premium coffee, espresso-based hot and cold specialty drinks, including lattes, cappuccinos and espresso shots, specialty teas, fruit smoothies, home-style soups, grilled Panini and classic sandwiches, wraps, hot breakfast sandwiches and fresh baked goods, including donuts."

For more on this hedge fund, we highlighted a new stock Scout has been buying recently.

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