Mick McGuire's activist hedge fund firm Marcato Capital recently filed an amended 13D with the SEC regarding their position in Life Time Fitness (LTM). Per the filing, Marcato continues to own 8% of the company with approximately 3.1 million shares.
Marcato's filing includes a letter to Life Time's Chairman commending the company for exploring a potential REIT conversion.
McGuire writes, "In our opinion, many investors and analysts do not fully appreciate the transformational nature of the Company's announcement. Based on Marcato's analysis, at the mid-point of our valuation range, we believe the shares of LTM could reach $70 per share upon separation of the Company's real estate assets."
We had previously highlighted how Marcato increased its Life Time Fitness stake this summer and now they're taking things a step further.
Embedded below is the full letter to the board as well as Marcato's presentation on valuation:
Monday, September 8, 2014
Marcato Capital Sends Letter to Life Time Fitness, Proposes Separation of Real Estate Assets
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