Maglan Capital purchases large stake of SFX Entertainment
Well known hedge fund Maglan Capital has purchased a large stake of SFX Entertainment in recent weeks, making it one of the company’s 10 largest stakeholders. The fund began buying shares when shares fell from the IPO price of $13 to $7. SFX initially disappointed investors who bought into the company’s IPO, but now presents an opportunity for value hunting investors such as Maglan Capital.
“After a premature IPO and disappointing stock price action thereafter, SFX has completed the lion’s share of it M&A and is now in a position to hit its inflection point and begin growth and profitability that should be explosive, possibly within a short period of time,” David Tawil Partner of Maglan Capital said.
SFX is entering the hottest part of the year for EDM festivals (summer) and plans to earn a significant chunk of its annual revenue over the next few months. Recent partnerships with Corona, T-Mobile, and Clear Channel also give confidence to investors that the Sillerman-run company can bring in big marketing companies into the EDM space. Sillerman’s antics can sometimes put off Wall Street types, especially after a profanity laced conference call, but investors are starting to believe that he has the right mindset to turn things around and create a strong business.
Via: The Street