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The hedge fund that led a revolt at HudBay Minerals Inc. (HBMFF.PK) and overthrew the company's board has reduced its stake in the Toronto-based miner.

SRM Advisors sold 1.83 million HudBay shares between April 27 and May 1, according to filings with SEDI. That takes its total interest in HudBay down to just under 15 million shares, or 9.8% of the company. That means Goodman & Co. is now HudBay's biggest shareholder with a 10.3% stake.

All of SRM's sales were made at prices between C$8.26 and C$8.38 a share. That was way above its prior trading range, as it came after a rally in commodity prices and speculation that HudBay could be a takeover candidate.

In late 2007, Monaco-based SRM owned as many as 22.6 million HudBay shares before gradually reducing its stake. The hedge fund went from being a passive to an active shareholder last year when HudBay struck its highly controversial deal to buy Lundin Mining Corp. (LMC). The deal eventually died, and an angry SRM launched a proxy fight that replaced all the board members and returned Peter Jones to the chief executive job.

Source: SRM Reduces Stake in HudBay