Marcato Capital Exits Life Time Fitness

Mick McGuire's hedge fund firm, Marcato Capital Management, has filed an amended 13D with the SEC regarding its stake in Life Time Fitness (LTM).  Per the filing, Marcato no longer holds shares in the company (they previously owned over 3.11 million shares).

The filing was made due to activity on March 16th.  Life Time Fitness recently agreed to a buyout from Leonard Green and TPG in a $4 billion deal.  As such, LTM stock has traded as a risk arbitrage name.  If we were to speculate, Marcato probably saw more attractive uses for their capital, rather than waiting around to capture the deal spread.

For more from this hedge fund, we also recently posted Marcato's presentation on Bank of New York Mellon.

Per Google Finance, Life Time Fitness is "engaged in designing, building, and operating multi-use sports and athletic, professional fitness, family recreation and spa centers in a resort-like environment, principally in residential locations of major metropolitan areas in the United States and Canada."

Marcato Capital Sends Letter to Life Time Fitness, Proposes Separation of Real Estate Assets

Mick McGuire's activist hedge fund firm Marcato Capital recently filed an amended 13D with the SEC regarding their position in Life Time Fitness (LTM).  Per the filing, Marcato continues to own 8% of the company with approximately 3.1 million shares.

Marcato's filing includes a letter to Life Time's Chairman commending the company for exploring a potential REIT conversion.

McGuire writes, "In our opinion, many investors and analysts do not fully appreciate the transformational nature of the Company's announcement.  Based on Marcato's analysis, at the mid-point of our valuation range, we believe the shares of LTM could reach $70 per share upon separation of the Company's real estate assets."

We had previously highlighted how Marcato increased its Life Time Fitness stake this summer and now they're taking things a step further.

Embedded below is the full letter to the board as well as Marcato's presentation on valuation:

Marcato Capital Increases Life Time Fitness Stake

Mick McGuire's hedge fund firm Marcato Capital today filed an amended 13D with the SEC regarding their stake in Life Time Fitness (LTM).  Per the filing, Marcato has indicated they own 7.6% of the company now with over 3.11 million shares.  This is up from the 2.9 million shares they previously disclosed.

The filing notes that "On June 17th (Marcato) received notification granting their request for early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.  Following such notification, (Marcato) exercised options that they owned and purchased additional shares."

We highlighted Marcato's original 13D filing on LTM here.

Per Google Finance, Life Time Fitness "operates multi-use sports and athletic, professional fitness, family recreation and spa centers in a resort-like environment."

Marcato Capital Files 13D on Life Time Fitness

Mick McGuire's hedge fund firm Marcato Capital Management has filed a 13D with the SEC on Life Time Fitness (LTM).  This is a brand new position for the hedge fund and they now own 7.2% of the company with over 2.9 million shares.

The filing was made due to activity on May 12th.  The activist investor included the typical boilerplate in the 13D and didn't outline any specific plans at this time.

Marcato's position is comprised of various stock options as they have calls referencing an aggregate of over 1.7 million shares with an exercise price of $30 and expire in July 2014.  They also sold put options for the same underlying amount of shares with the same strike and expiration date.  They've also entered into swaps.

Their trading activity log shows they were buying stock at the end of March around $47.80, the end of April around $47.74 and in the middle of may around $48.45.

Per Google Finance, Life Time Fitness is "operates multi-use sports and athletic, professional fitness, family recreation and spa centers in a resort-like environment."

For more on this hedge fund, check out Marcato's presentation on Sotheby's & Dillards.