Dan Loeb's Third Point Boosts Sotheby's Stake: 13D Filing ~ market folly

Tuesday, August 27, 2013

Dan Loeb's Third Point Boosts Sotheby's Stake: 13D Filing

Dan Loeb's hedge fund firm Third Point has filed a 13D with the SEC regarding shares of Sotheby's (BID).  In it, they reveal a 5.7% ownership stake in BID with 3,925,000 shares.

This marks a 57% increase in their position size since the end of the second quarter.  Third Point initially started their BID stake in Q1 of this year, ramped it up in Q2, and have now added to it further.  The 13D filing was required due to portfolio activity on August 15th.

Other Activist Investors Involved

Third Point's 13D contains the standard boilerplate saying that they intend to engage the board of management.  It's also worth highlighting that another activist investor is involved in shares as well: Mick McGuire's Marcato Capital Management.  They disclosed a stake in BID at the end of July.  Additionally, Nelson Peltz's Trian Fund Management just started a new position in Sotheby's in Q2 as well.

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."

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