market folly

Mick McGuire of activist hedge fund Marcato Capital Management pitched Sotheby's (BID) at the Excellence in Investing San Francisco conference yesterday.  We'll be posting up notes from the event soon, but in the mean time here's Marcato's take on BID.

Marcato's Presentation on Sotheby's (BID)

McGuire feels there's an opportunity for BID to return capital to shareholders and suggests that a $1.3 billion accelerated repurchase (around 38% of market cap) could boost shares to $68, up 56% from July 30th close. He's also looking for various operational improvements that can contribute to the upside.

Marcato isn't alone on their bullish and activist stance on BID as Dan Loeb's Third Point sent a letter to the BID board recently.

Embedded below is McGuire's presentation from the Excellence in Investing San Francisco conference:



Check back soon as we'll be posting up notes from Excellence in Investing SF shortly!