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Hedge fund Marcato up 6 percent in 2017 after strong April

Published 05/02/2017, 02:43 PM
Updated 05/02/2017, 02:50 PM
© Reuters.  Hedge fund Marcato up 6 percent in 2017 after strong April

BEVERLY HILLS (Reuters) - Activist hedge fund Marcato Capital Management, which is currently seeking to oust the chief executive at Buffalo Wild Wings, has gained 6 percent in the first four months of 2016.

The San Francisco-based hedge fund returned 3 percent in its main fund in April while its Marcato Encore International fund, which focuses more on smaller stocks, gained 4.1 percent last month, leaving the portfolio up 7.9 percent for the year, an investment update seen by Reuters shows.

Separately, Jana Partners, another activist hedge fund which is currently pushing for change at Whole Foods, told investors that its Jana Partners fund gained 0.9 percent last month, leaving it up 5.3 percent for the year, an investor said.

The average global hedge fund has returned 2.09 percent this year according to data from Hedge Fund Research Inc.

Marcato's performance was driven mainly by gains in crane and mining equipment maker Terex Corp. and Deckers Outdoor Corp., the maker of UGG brand boots and apparel, companies the hedge fund invested in within the last year.

At Buffalo Wild Wings, Marcato owns a 6.1 percent stake. Since last year, the hedge fund has been pushing the restaurant chain to franchise more of its stores, increase its sales and raise its profit margins. The fund is currently seeking to put four new directors on the board, including the fund's founder Mick McGuire. It is urging CEO Sally Smith, who has had the top job since 1996, to retire.

Separately Jana Partners, another activist hedge fund which is currently pushing for change at Whole Foods, told investors that its Jana Partners fund rose 0.9 percent in April and is now up 5.3 percent for the year.

The average global hedge fund returned 2.09 percent in the first four months of the 2016, according to Hedge Fund Research, lagging the S&P 500s 7.2 percent gain.

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