Corvex Management Increases ARCP Stake, Writes Letter to Board

Keith Meister's hedge fund firm Corvex Management has filed an amended 13D with the SEC regarding their position in American Realty Capital (ARCP).  They now own 7.8% of the company with exposure to over 70.6 million shares.

This is an increase of over 5.9 million shares since Corvex first reported its ARCP stake in December.  They acquired call options and common stock in late December/early January and sold put options as well.

The activist filing also includes an open letter that Corvex has written to the board of ARCP and to candidates for Chairman and CEO.  You can read the full letter here.

Per Google Finance, American Realty Capital is "a real estate investment trust (REIT). The Company owns and acquires single-tenant, freestanding commercial real estate primarily subject to medium-term net leases with credit quality tenants." 

Corvex Management Takes American Realty Capital Stake

Keith Meister's activist hedge fund Corvex Management has filed a 13D with the SEC regarding American Realty Capital (ARCP).  Per the filing, Corvex now owns 7.1% of the company with over 64.7 million shares (with 56.77 million of those shares underlying call options).  This is a new position for the hedge fund.

The activist filing indicates that Corvex has met with company management and want to add members to the board.  The filing was required due to activity on December 18th.

We've highlighted additional recent portfolio activity from Corvex here.

Per Google Finance, American Realty Capital is "a real estate investment trust (REIT). The Company owns and acquires single-tenant, freestanding commercial real estate primarily subject to medium-term net leases with credit quality tenants."

Corsair Capital's Thesis on American Realty Capital Properties (ARCP): Q2 Letter

Jay Petschek and Steven Major's hedge fund Corsair Capital recently sent out their Q2 letter and in it they detailed their thesis on a new core investment, American Realty Capital Properties (ARCP).

The main story here is that this is an underfollowed company with minimal sell-side coverage that's gone through a "major transition" over the past 6 months.  The company is a net lease real estate investment trust that owns single tenant commercial properties.

Overall, Corsair sees numerous catalysts for the company, including closing 2 deals, internalizing the management company, increasing the dividend slowly, and acquiring more properties.

Embedded below is Corsair's Q2 letter with the full ARCP thesis:




In the other part of Corsair's letter, the hedge fund firm also reveals they have a new core position in ING US Inc (VOYA).  This is a spin-off of the company's US operations that came to market at ~50% of book value as the company was a 'forced seller.'  Corsair thinks the company will trade at book value ($38) or slightly higher as the company drives initiatives and they could start a dividend.

For more on this hedge fund, we've also posted up Corsair's thesis on Ryman Hospitality here.