Clarkson’s Standoff With Management of Shareholding Continues

Seemingly intent on making management responsive to shareholder’s investments, Castalia shipping fund partners criticized Horace Clarkson’s return levels and core business strategies at Clarkson’s AGM in May.

Clarkson is Castalia’s largest single holding and, according to Castalia’s March 31 shareholders’ letter, a “principal factor behind the Fund’s strong performance in the first quarter.” But Castalia partners were not interested in niceties at the meeting and questioned Clarkson’s money-losing insurance broking business, perceived operating profitability weakness and more than generous bonus packages for managers.

With a larger proportion than normal of the Fund’s net assets in shares of Clarkson – 32.3% of Castalia’s net assets – the partners’ interest is not casual. And, because Castalia is representing the interests of several other significant investors, speculation about Castalia’s potential takeover bid is not out of bounds.

This is only an excerpt of Clarkson’s Standoff With Management of Shareholding Continues

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