Marcato's McGuire: Terex Could Triple From Here

Sep 13 2017 | 8:45pm ET

Activist hedge fund manager Mick McGuire believes the stock of crane manufacturer Terex could more than triple from current levels as the firm executes on a disciplined operational and capital allocation plan.

McGuire’s Marcato Capital Management hedge fund first disclosed a stake in Terex in July of last year and now owns some 1.1 million shares, or approximately 6% of the company. At the time, Marcato stressed that selling certain business lines and undergoing a strategic restructuring would result in cost savings, higher margins and growing revenue. The fund also suggested shaking up Terex’s board (a Marcato parter joined as a director earlier this year) but has to date been supportive of CEO John Garrison.

McGuire is already way ahead on his Terex position; the company’s stock has doubled since Marcato first disclosed its stake and closed Wednesday up 2.4% to $42.73.

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 company, fresh off a bruising proxy battle with Buffalo Wild Wings, manages more than $1 billion. 

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