Former SEC Chairman
Richard Breeden
|
After activist hedge fund manager Richard Breeden
launched
an insurgency at Zale Corp. last week, alternative investment megafund
Citadel Investment Group LLC reported Tuesday that it had bought a 5.3% stake
in the specialty jewelry chain.
Citadel Investment Group, a $16 billion fund based in Chicago, reported in a
Securities and Exchange Commission filing that it had acquired the significant
stake, indicating that managers there believe Breeden may be successful at
influencing the long-term stock price of the company.
Continue reading below
According to a Sept. 17 SEC filing, Breeden had met with management of the
Irving, Texas-based corporation and plans to continue discussions with
executives and directors. Talks between Breeden and Zale centered on the
jewelry company's financial performance and strategic options, including an
auction of key assets.
Prior to launching an activist governance fund, Breeden was chairman of the
SEC during President George H.W. Bush's administration between 1989 and 1993.
He manages one-year-old Breeden Capital Management, which has over $1 billion
in assets under management.
Before launching an activist campaign at Zale, Breeden has taken his
insurgency approach to H&R Block Inc. and Applebee’s International Inc.,
where his three-month-long campaign resulted in the casual restauranteur's
agreement to be sold to IHOP Inc. and two investors for $2.1 billion. —Ron
Orol
See
Sept. 18 story about Zale from TheDeal.com
See
related Applebee's story from TheDeal.com
See
related H&R Block story from TheDeal.com
Ron Orol is a reporter for The Deal and author of
Extreme
Value Investing: How Activist Hedge Fund Managers Are Taking on the
World.
Tags:
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