HedgeTracker – Tom Hudson, well-known shareholder activist investor and founder of Pirate Capital – is gathering money to start new a new firm called Doubloon Capital LLC, which will focus on distressed and bankrupt companies. According to a Wall Street Journal article, Doubloon Capital will primarily invest in the industrial, real estate, retail, and casino sectors.
Pirate Capital, which Mr. Hudson founded in 2002, invested in distressed companies such as resort operator Intrawest and prison operator Cornell Co. and urged those company’s managers to sell them. The firm lost lots of money at the start of the 2007 financial crisis and froze several funds but still returned 99.64% between 2003 and 2009, twice as much as the S&P 500.
