The Kate Spade board of directors received a letter from small New York-based hedge fund Caerus Investors asking them to sell the company. As a result shares soared and are up more than 7 percent for the day.
In the letter, which was acquired by Business Insider, activist investors Ward Davis, founder of Caerus and Brian Agnew, managing partner, stated that “We are deeply concerned about the precipitous decline in the share price of Kate Spade over the last two and a half years brought about by management’s inability to meet their own stated goals.”
As quoted in the New York Post, Kate Spade’s response to the hedge fund remained passive.
“We appreciate shareholder feedback and we will continue to have an open and constructive dialogue with all our shareholders.”