Activist Hedge Funds Demand Dillard’s Attention

Jan 30 2008 | 7:21am ET

A pair of activist hedge funds is demanding changes at an iconic southern department store.

Barrington Capital Group and Clinton Group, which together own 5.3% of Dillard’s Inc., have called on the company to improve its inventory management, close underperforming stores and sell properties, all in the name of improving its stock price.

“Dillard’s can and must deliver considerably better financial and share price performance,” Barrington’s James Mitaronda and Clinton Group’s Michael Popson wrote to the Little Rock, Ark.-based company’s board. While acknowledging that times are difficult for retailers, Mitaronda and Popson complained that Dillard’s management has not responded to its suggestions for improving performance.

“Unfortunately, it appears to us that you have not only ignored our letters, but have also done little to improve the company on your own initiative, as Dillard’s financial results have gone from bad to worse since our initial communication in June 2007,” they wrote.

But Mitaronda and Popson expressed optimism about the company’s future, calling a recent share buyback a positive step, and noting that Dillard’s markets in the south and southwest are growing rapidly.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note