Pershing Cub Increases Stakes In DineEquity & Cincinnati Bell

Marcato Capital Management, a hedge fund managed by Richard “Mick” McGuire, one of the rising stars in the industry, increased its stake in DineEquity Inc (NYSE:DIN) by 250,000 shares to 1,021,486 shares, based on its latest 13D filing with the Securities and Exchange Commission (SEC). The hedge fund owns 5.5 percent in the company. Richard McGuire founded Marcato Capital Management in 2010. Prior to the starting the fund, Richard McGuire was an analyst at Bill Ackman’s Pershing Square Capital.

Pershing Cub Increases Stakes In DineEquity & Cincinnati Bell

The hedge fund initially purchased stocks in DineEquity during the last quarter of 2011. Marcato Capital disclosed its latest stock holdings in the company in compliance with the regulations of the SEC.

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During the third quarter of the current fiscal year, Marcato Capital held 771,486 shares of DineEquity Inc (NYSE:DIN). Over the past two months, its stakes in the company increased by 32 percent. The hedge fund purchased the stock at an average price of $62.52 per share on November 27.

DineEquity Inc (NYSE:DIN) is one of the leading full-service dining companies worldwide. The company operates the popular brands of IHOP and Applebee’s restaurants. The stock price of the DineEquity is up by nearly 3 percent to $63.67 per share in after hours trading on Wednesday, November 28.

The company reduced its total debt by $167.2 million in the third quarter and posted a net income of $18.9 million, or $1.03 adjusted earnings per diluted share. DineEquity Inc (NYSE:DIN) also completed the sale of its 33 and 65 company-operated Applebee’s restaurants to American Franchise Capital, LLC and TSFR Apple Venture, respectively.

Marcato Capital’s top holdings in its portfolio as of September 30, 2012 include Corrections Corp Of America (NYSE:CXW), Cincinnati Bell Inc. (NYSE:CBB), NCR Corporation (NYSE:NCR), Gencorp Inc (NYSE:GY), and Alexander & Baldwin Holdings Inc (NYSE:MATX).

Last October 25, the hedge fund  also purchased 1, 357,130 additional shares of Cincinnati Bell, bringing its total holdings in the telecommunications company to approximately 14.2 million shares, based on its 13D filing with the SEC.

During the third quarter that ended September 30, Marcato Capital held 12, 835, 855 shares, which represents 14.78 percent of its portfolio.  The hedge fund currently owns 7.2 percent of the outstanding shares of Cincinnati Bell.

McGuire established Marcato Capital Management in 2010. Prior to the inception of his firm, he was a partner at Pershing Capital Management, a hedge fund managed by activist investor Bill Ackman.