Hedge funds Goodwood Inc. and Mason Capital Management recently led a shareholder revolt that replaced the management team at underperforming ATS Automation Tooling Systems Inc. (OTCPK:ATSAF). The deposed management team was already following the directions of the hedge funds, so we might wonder if the intervention will materially affect the outcome, if not cause a delay since it could take some time to get the new management up and running. And sometimes new management finds skeletons in the closets and unloads the bad news on the front end.
What renders hope is the past record and personal qualities of the portfolio managers at Goodwood Fund. They have had several very good interventions in the past, and Peter Puccetti is a person of great determination.
For example, when he was first trying to break into the money management field from his home town of Halifax (i.e. the hinterlands), he applied to over 30 Bay Street firms and received more than 100 rejections before he landed a job. If anyone can surface some value out of ATS Automation, it would appear to be Puccetti.
ATSAF 1-yr. chart: