| Company type | Private |
|---|---|
| Industry | Hedge Fund |
| Founded | 2002 |
| Headquarters | Norwalk, CT |
| Key people | Thomas R. Hudson Jr (Founder) |
Pirate Capital LLC was an American hedge fund. The firm employed shareholder activism to push for structural changes in target companies.
History
Pirate Capital was founded in 2002 by Thomas R. Hudson Jr with $2 million in savings. Between 2002 and 2006, the hedge fund had joined the boards of eight companies. In May 2005, Pirate had acquired nearly 2 million shares for a 14.8% stake in Cornell Companies, and subsequently nominated seven directors to the company's board. In March 2006, the firm owned 5.8 million shares of Intrawest, and pressured the company to sell. Intrawest was later sold to Fortress Investment Group for $1.8 billion. In June 2006, it pressured Mirant Corporation to drop its takeover bid for NRG Energy. In October 2007, Pirate Capital threatened a proxy battle against Brink's unless the cash handling company adopted changes to its corporate governance.
In September 2007, in the early stages of the 2007–2008 financial crisis, Pirate Capital suspended redemptions on two of its four funds.
Investment strategy
Pirate Capital operated four funds including the Jolly Roger Activist Fund. The fund purchases stakes in underperforming companies and then pushes for managerial action. The company's motto is: "Surrender the Booty!"
Key personnel
- Thomas R. Hudson, Jr, founder and sole managing partner; formerly managed a portfolio of distressed bank debt at Goldman Sachs. Mr Hudson was fired from Goldman Sachs in 1999 and from Amroc Investments in 2001.
References
- ^ Corkery, Michael (February 25, 2010). "Pirate Capital Tom Hudson Sets Sail With A New Fund". WSJ.
- "The Man Behind Pirate Capital". DealBook. 2 February 2007. Retrieved 23 May 2024.
- ^ "Pirate scores big, hits rough water". Tampa Bay Times. No. 7 February 2007. Retrieved 23 May 2024.
- Greer, Jim (2 June 2005). "Cornell board surrenders to Pirate Capital". www.bizjournals.com. Retrieved 23 May 2024.
- "Mirant ends its $8 billion bid for NRG Energy". The Denver Post. 12 June 2006. Retrieved 23 May 2024.
- ^ Davies, Megan; Hamilton, Dane (1 October 2007). "Brink's shareholder calls for board rule change". Retrieved 23 May 2024.
- Hamilton, Dane (11 September 2007). "Pirate Capital blocks investor exits". Retrieved 23 May 2024.
- Boyd, Roddy (2006-09-29). "Staff Walks the Plank at Listing Pirate Capital". New York Post. Archived from the original on 2007-03-24. Retrieved 2007-05-25.
- ^ Effinger, Anthony; Burton, Katherine (2007-02-02). "Mutiny at Pirate Capital Roils Hudson After Worst Year Ever". Bloomberg L.P. Retrieved 2007-05-25.
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