INVESTMENT HIGHLIGHTS
Marcato’s activism followed a consistent pattern: identify a high-quality business trading at a discount to its fair value, engage directly with its board and management, and pursue a clear, actionable path to close that gap — whether through a spinoff, a recapitalization, a change in leadership, or a sale of the company. Across its headline positions, Marcato’s activist investments outperformed the S&P 500 and Russell 2000 by an average of roughly 20–30% over the equivalent holding periods.
SELECTED CAMPAIGNS
Position Detail
Alexander & Baldwin
A Hawaii land and real estate company tracing back to an 1870s sugar plantation, holding roughly 7.9 million square feet of commercial space and 88,000 acres of Hawaiin land. Also controlled and operated California-based shipping company Matson. Marcato’s research led to the spin-off of Matson as a new stand-alone public company.
Bank of New York Mellon
The world’s largest global custody bank. Marcato highlighted BNY Mellon’s history of underperformance and pressed for new leadership, sharper cost discipline, and a repositioned asset-management business.
Sotheby's
One of the world’s two dominant global art auction houses. Marcato identified over a billion dollars of excess capital on the balance sheet and publicly called for a change in leadership, a share buyback and improved capital allocation policy.
Buffalo Wild Wings
A national casual-dining and sports-bar chain. Marcato ran a public proxy contest in 2017 calling for accelerated franchising, disciplined capital allocation, and new board leadership — and won; the CEO departed shortly after. The business was ultimately sold to Arby’s and Roark Capital Group.
Deckers Outdoor
Parent of UGG boots and Hoka running shoes, and other shoe brands. Marcato’s 2017 proxy contest pushed a sharper focus on the core UGG brand, a reversal in physical retail store expansion, divestiture of non-core brands, and a recapitalized balance sheet. Deckers replaced their longtime CEO and adopted many of Marcato’s proposals.
Lear Corporation
A global automotive seating and electrical-systems supplier. Marcato engaged multiple times with Lear over several years, first securing new board members and a return of capital to shareholders. Later pressing for additional capital returns and a separation along the company’s two core divisions.
NCR Corporation
A leading provider of ATM and point-of-sale technology. Mick McGuire personally joined NCR’s board of directors and catalyzed a process to pursue a sale or recapitalization, resulting in an investment by The Blackstone Group.
Terex Corporation
A global industrial and construction equipment manufacturer. Marcato proposed and endorsed a new strategic plan focused on simplifying the Terex business portfolio and improving returns on invested capital through a major expense-saving sourcing initiative. Marcato partner Matthew Hepler joined Terex’s board in 2017 as part of the engagement.
Lifetime Fitness
High-end health and fitness club operator. Marcato proposed a revised real estate strategy which led to the consideration of a REIT conversion and the ultimate sale of the company to TPG and Leonard Green & Partners.
IHG
Global hospitality and hotel operator. Marcato pushed IHG to consider a merger with another major hotel company during a window of industry consolidation.
BEYOND THE HEADLINE POSITIONS
Additional Engagements
GenCorp
Defense and aerospace propulsion company experiencing an inflection in its core defense business and sitting on valuable excess land.
United Rentals
Capital allocation and capital-structure campaign, first presented at the Value Investing Congress.
Epiq Systems
Legal e-discovery and bankruptcy-administration software provider; resolved through a change in leadership, revised corporate financial strategy and ultimately a sale of the company.
Rent-A-Center
Leadership and operational-improvement campaign, resolved through a change in leadership and improved operational performance.
Cincinnati Bell / CyrusOne
Spin-off of fast-growing and highly valuable data center operator CyrusOne from secular-declining telco business. Lobbied CyrusOne for shareholder friendly dividend-policy post-IPO. Ultimately purchased by KKR.
Rayonier Advanced Materials
Operational-improvement and capital-allocation campaign. Marcato partner Matthew Hepler joined the board of the company.
Landry’s Restaurants
Hidden valuable owned real estate and dormant casino assets. Conflicts of interest in governance stemming from influence of founder and primary shareholder. Resolved through a sale of the company.
Virtus Investment Partners
Capital allocation and capital-structure campaign.
Journal Media Group
Real estate monetization strategy, resolved through a sale of the company.
AAR Corporation
Capital allocation and capital-structure campaign.
Dillard's
Mid/upper-scale department store chain experiencing secular decline. Marcato proposed separating its real estate into a REIT and returning capital to shareholders.
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