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NEW YORK : Hedge fund JAT Capital on Monday urged Overstock.com to consider selling certain assets and overhauling its management and compensation, warning it may seek board seats if its suggestions are ignored, a regulatory filing on Monday showed.
The hedge fund, run by John Thaler, owns a 9.1 per cent stake in Overstock.com, and made its demands public in the filing after sending a letter outlining its wishes to the company last week.
Overstock’s stock price climbed nearly 9 per cent after the filing.
Overstock.com, which spent $21.5 million to buy certain intellectual property assets from Bed Bath & Beyond a few months ago, did not immediately respond to a request for comment.
JAT is not traditionally an activist investor but its filing signaled mounting frustration with the company and left open the option of pursuing strategies like running a proxy contest.
JAT also wants the company to emphasize stock option participation and develop a business plan with financial objectives, the filing said.
“The Reporting Persons may consider to seek Board representation to the extent the above recommendations have not been explored, pursued and executed satisfactorily.”
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