JAT Capital Discloses 6.7% Stake In Madison Square Garden

JAT Capital Management, a hedge fund headed by John A. Thaler increased its stake in The Madison Square Garden Co (NASDAQ:MSG), according to its latest 13D filing with the Securities and Exchange Commission (SEC).

The filing showed that JAT Capital Management owns 4,280, 865 shares or 6.7% stake in The Madison Square Garden Co (NASDAQ:MSG). The hedge fund previously owned 1,642,665 shares of the company on its 13F, which means it recently acquired additional 2,638,200 shares.

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The Madison Square Garden Co (NASDAQ:MSG) is the owner of the New York Knicks basketball team and the New York Rangers hockey team. The company also operates entertainment venues such as the Radio City Music Hall.

JAT Capital to seek talks with Madison Square Garden’s board

JAT Capital believed that the shares of The Madison Square Garden Co (NASDAQ:MSG) are undervalued and represent an attractive long-term investment opportunity.

The hedge fund plans to seek to engage the board of directors or the management of The Madison Square Garden Co (NASDAQ:MSG) in discussions.

JAT Capital emphasized that it would engage the leadership of the company in a constructive manner to suggest ways to achieve long-term value for the company including options for operations, management, governance, business, strategic plans, assets and capital structure.

JAT Capital indicated that it had no plans to acquire a controlling stake in the company or demand for a merger with any other party. The hedge fund said it would review its investment in The Madison Square Garden Co (NASDAQ:MSG) on a continuing basis depending in different factors including the company’s financial position, results of strategic directions and others.

JAT Capital is currently the fourth largest shareholder of the Class A stock of the company.

Stock action

The Madison Square Garden Co (NASDAQ:MSG) is trading around $66.73 per share, up by nearly 1% at the time of this writing around 1:41 in the afternoon in New York.

Over the past 52-week range, the shares of the company climbed from $48.16 to $66.94 per share. The Madison Square Garden Co (NASDAQ:MSG) has a market value of approximately $5 billion. In 2010, the company was spun off from Cablevision Systems Corporation (NYSE:CVC).