Marcato Capital Management's Flagship Fund Gains 1.2% in May

Jun 2 2016 | 10:40pm ET

The main portfolio at Mick McGuire’s activist hedge fund Marcato Capital Management booked a 1.2% return in May as the fortunes of large positions in Bank of New York Mellon and Sotheby's improved.

May’s results bring the fund’s year-to-date loss to 8.7%, still substantial but significantly less than the double-digit decline the fund was showing earlier in the year, according to a Reuters article citing an unidentified person familiar with the company’s returns. 

In comparison, the S&P 500 gained 1.5% during the period. 

Marcato’s small-cap portfolio, named Encore and started in 2015, performed better than its larger-company cousin during the month, gaining 4% and bringing its YTD performance into the green at +2.2%. 

Marcato has been agitating for change at Bank of New York Mellon and auction house Sotheby’s since late 2014 according to securities filings. 

Bank of New York Mellon is up around 2.2% so far in 2016, while Sotheby’s has rallied more than 18%.

The filings also show Marcato exited out of LPL Financial during the first quarter after acquiring more than 6% of the independent B/D last fall, reduced its stake in Goodyear, added to its position in broadband company Liberty Media and added stakes in single-family REIT Colony Starwood Homes and United Rentals.

McGuire is a protégé of well-known activist Bill Ackman of Pershing Square Capital Management. He founded San Francisco-based Marcato in 2010 with backing from Blackstone. The firm manages approximately $3 billion in assets.


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