Manhattan-based hedge fund Irenic Capital Management LP has taken an 8.1% stake in Reservoir Media and believes the music company is “undervalued,” according to a regulatory filing on Monday (September 30).
Described as an “activist investor” wall street journalIrenic called on Reservoir to “undertake a comprehensive strategic review of all alternatives to maximize shareholder value and establish a special committee on the board of directors to oversee this process.”
“The Reservoir Media board of directors values shareholder input and we remain focused on executing our strategy to drive value, consistent with our fiduciary responsibility to all shareholders,” a company spokesperson said in a statement. advertising billboard.
Reservoir stock has outperformed many of its peers in the multi-industry, label/music publisher space in 2024. %) and four K-pop companies: HYBE, SM Entertainment, JYP Entertainment and YG Entertainment (an average decline of 33.1%).
Only French music company Believe performed better than Reservoir, which rose 42.5% as it became the target of a management-led takeover. Believe CEO explains move to take it private Dennis loading shop It said the company “exceeded its targets” but that its success was “not reflected in the evolution of the share price”.
Still, Reservoir remains well below its original price of $10.00 when it merged with special purpose acquisition company (SPAC) Roth CH Acquisition II Co in 2021.
Irenic owns stakes in freight company Forward Air, Canadian software company Kinaxis and industrial technology company Barnes Group Inc, of which Irenic is chief executive Andy Katz Gained board seat in March. Irenic explains on its website that it “invests in public companies and works with management” to improve operating and financial performance and “create long-term value for the company and its owners.” Katz previously worked at Elliott Management, where he focused on “special situations” such as public equity activism and distressed credit.
