Strongbow Capital Takes Aim At Duckwall

Nov 27 2007 | 12:40pm ET

Activist hedge fund shop Strongbow Capital Management is taking aim at the management of Duckwall-ALCO Stores and is making noise about nominating new directors at the regional retailer’s 2008 annual meeting.
 
On Nov. 20, Strongbow’s chairman Raymond French sent a letter to Duckwall’s board and management venting his frustration at the company’s failed three-year turnaround program.

“To date, along with the company’s other shareholders, we have been patient with the current board and current management in achieving the financial goals espoused by the company’s chairman and CEO at the start of the three-year turnaround program,” wrote French. “In the last fiscal year the company achieved an ROE of 5.5%; further, in the 12-month period ended with the second quarter of this year, it achieved an ROE of 3.88%. Even if the company achieves its operating plan for this fiscal year, it will still fall far short of a mid-teens percentage ROE.”

And unless French sees “satisfactory concrete progress in the problem areas” and an “acceptable” improvement in the company’s 12-month run-rate ROE by the end of Q3 of this fiscal year, he is threatening to nominate a slate of directors for election to the board and make other proposals at that 2008 annual meeting.

Strongbow Capital currently owns 543,517 shares, or 14.27% of Duckwall, making it the largest shareholder of the company.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Scene Last Night: Clinton, Schwarzman, Corzine, Neidich, Diamond

Nov 25 2014 | 5:52pm ET

Steve Schwarzman had a granddaughter yesterday morning. Last night he sat one table...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.