Pirate Capital was founded in 2002 by Thomas R. Hudson Jr with $2 million in savings.[2] Between 2002 and 2006, the hedge fund had joined the boards of eight companies.[3] In May 2005, Pirate had acquired nearly 2 million shares for a 14.8% stake in Cornell Companies, and subsequently nominated seven directors to the company's board.[4] In March 2006, the firm owned 5.8 million shares of Intrawest, and pressured the company to sell. Intrawest was later sold to Fortress Investment Group for $1.8 billion.[3] In June 2006, it pressured Mirant Corporation to drop its takeover bid for NRG Energy.[5] In October 2007, Pirate Capital threatened a proxy battle against Brink's unless the cash handling company adopted changes to its corporate governance.[6]
In September 2007, in the early stages of the 2007–2008 financial crisis, Pirate Capital suspended redemptions on two of its four funds.[7][1]
Investment strategy
Pirate Capital operated four funds including the Jolly Roger Activist Fund.[6] The fund purchases stakes in underperforming companies and then pushes for managerial action.[8] The company's motto is: "Surrender the Booty!"[9]
Key personnel
Thomas R. Hudson, Jr, founder and sole managing partner; formerly managed a portfolio of distressed bank debt at Goldman Sachs. Mr Hudson was fired from Goldman Sachs in 1999 and from Amroc Investments in 2001.[9]
