Five Pirates walk plank
NORWALK, Conn. --Pirate Capital, an activist hedge fund and major Brink's stockholder that in August sent a letter to Brink's suggesting the company put itself up for sale, hit some rough waters recently with employee attrition and an SEC inquiry.
According Reuters and N.Y. Times reports, the $1.7 billion hedge fund will lose five of its investment employees. One, Zachary George, was the analyst in charge of Brink's when Security Systems News called Pirate in August. Pirate "has come under scrutiny by the SEC" for late stock sale reporting and the fund has closed to additional investors to "focus on delivering returns," reports said. Pirate canceled an Oct. 3, investor call.
Isa Bolotin, investor relations for Pirate Capital, did not return a call for comment before press time. Jack Mallon, managing partner for Mallon Associates, in August said he believed the fund was "pressuring for a sale on the faulty assumption that there is a buyer out there prepared to pay a premium price." On Oct. 4, Mallon surmised that "Pirate should be preoccupied, and this should take the pressure off the Brink's scenario."