A high-profile US ‘activist investor’ has bought a stake in FedEx but is stressing he supports thecompany management after meeting founder and CEO Fred Smith.
Dan Loeb, founder and CEO of hedge fund Third Point, revealed during a New York Timesconference yesterday that the fund has bought a stake in FedEx but did not say what size it is.According to FedEx information on its shareholder structure, some 63 hedge funds currently ownabout 9.8 million shares, which represents 3.6 per cent of institutional shares.
Loeb also said he had met FedEx founder and CEO Fred Smith last week to discuss the company’sperformance in a “very constructive discussion”. He emphasised his admiration for the entrepreneur,despite some disagreements, describing him as “one of the great American CEOs, entrepreneurs andcompany founders”, and said he would “absolutely not” try to get a change of management.
The hedge fund manager is known for having sought management and strategic changes at variouscompanies, including Yahoo, Nokia and Sony. FedEx shares, which have already risen strongly fromthe $110 level in early September to around $135, quickly moved up yesterday after Loeb’s comments.
FedEx is in the midst of an ongoing $1.7 billion medium-term restructuring programme,combining cost savings, network optimisation and organic growth measures, designed to improveprofitability, especially at FedEx Express.
