{"id":4417,"date":"2006-05-12T00:00:00","date_gmt":"2006-05-12T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"hedge-fund-demands-sale-of-california-coastals-land","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/05\/2006\/hedge-fund-demands-sale-of-california-coastals-land.html","title":{"rendered":"Hedge fund demands sale of California Coastal&#8217;s land"},"content":{"rendered":"<p>Reuters &#8211; A hedge fund group holding 11 percent of developer California Coastal Communities Inc. (CALC.O: <a href=\"http:\/\/today.reuters.com\/stocks\/overview.aspx?symbol=CALC.O\">Quote<\/a>, <a href=\"http:\/\/today.reuters.com\/stocks\/CompanyProfile.aspx?symbol=CALC.O\">Profile<\/a>, <a href=\"http:\/\/today.reuters.com\/stocks\/ResearchReports.aspx?symbol=CALC.O\">Research<\/a>) on Thursday told thecompany to sell a key asset and give the money to shareholders.<\/p>\n<p>  The fund, Mellon HBV Alternative Strategies, told the Irvine, California-based company that it should auction off its 105-acre Bolsa Chica mesa site in southern California overlooking the Pacific  Ocean. The company recently won approval to build on the site overlooking Huntington Beach, and plans a 349-home development there.<\/p>\n<p>  The Mellon HBV demand comes amid a spate of activist moves by hedge funds, who typically buy large stakes in underperforming companies and demand strategic changes to make a quicker return. Often  such demands escalate into proxy contests for board seats.<\/p>\n<p>  Mellon HBV, a unit of Mellon Financial Corp. (MEL.N: <a href=\"http:\/\/today.reuters.com\/stocks\/overview.aspx?symbol=MEL.N\">Quote<\/a>, <a href=  \"http:\/\/today.reuters.com\/stocks\/CompanyProfile.aspx?symbol=MEL.N\">Profile<\/a>, <a href=\"http:\/\/today.reuters.com\/stocks\/ResearchReports.aspx?symbol=MEL.N\">Research<\/a>), said it &#8220;did not want to  assume the risk of developing the property nor wait two years before recognizing a return on our investment,&#8221; according to a letter to the company it filed with the U.S. Securities and Exchange  Commission.<\/p>\n<p>  &#8220;We would suggest that if management wants to assume that risk (of developing the property), they and any stockholders with a similar view can do it themselves by taking the company private,&#8221; said  Mellon HBV in the letter.<\/p>\n<p><a href=\"http:\/\/www.google.com\/news\/url?sa=T&amp;ct=us\/1-0&amp;fd=R&amp;url=http:\/\/today.reuters.com\/investing\/financeArticle.aspx%3Ftype%3DfundsNews2%26storyID%3D2006-05-11T200912Z_01_N11304807_RTRIDST_0_FINANCIAL-HEDGE-CALIFORNIACOASTAL.XML&amp;cid=1106460229&amp;ei=SzdkRNeyEoWuoQLY4Kj6CQ\">ReadComplete Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reuters &#8211; A hedge fund group holding 11 percent of developer California Coastal Communities Inc. (CALC.O: Quote, Profile, Research) on Thursday told thecompany to sell a key asset and give the money to shareholders. The fund, Mellon HBV Alternative Strategies, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4417","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=4417"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4417\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=4417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=4417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=4417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}