Monday, May 11, 2009

Correction: Ariel Investments still has 9 million shares of McClatchy stock

Correcting one of my posts from last week, Fitz and Jen note today that Ariel Investments is still a major holder of McClatchy stock, with nearly 9 million shares.
Last week, relying on a report from a mid-cap fund of Chicago-based Ariel Investment, I reported incorrectly that Ariel had dumped all its stock in The McClatchy Co. (NYSE: MNI).

In the immortal words of the Amy Winehouse song: No, no, no, no, no, no.

Monday Ariel filed a Schedule 13-G with the SEC that tells the real story: It still owns a ton of MNI, and is probably still the single-largest institutional holder.

One of its small- and mid-cap funds, Ariel Fund, might have exited the stock, but Ariel Investments still has 8,976,372 shares of MNI, 15.5% of shares outstanding, according to the SEC filing.

That does represent a reduction in its stake from Dec. 31, 2008, when Ariel said it held about 15.2 million shares, or 18.32% -- but it’s a long way from exiting MNI.

Sincere apologies to McClatchy, Ariel and Fitz & Jen readers -- and Jen, who had nothing to do with this misstep -- for getting this one so wrong.

The post Fitz is referring to was based on my post from last week. I had looked at a statement from Ariel Fund, one of Ariel's small- and mid-cap funds, which said it had given up its position in MNI, and thought the reference was to Ariel Investments. My apologies for getting it wrong.


Anonymous said...

Just because this amended 13G still lists additional shares still owned that isn't necessarily the case. Each divestiture will be listed separately according to fund. This particular fund is dated 09 April just a few days after 16 million shares were unloaded over a 2 day period. The statement was filed today so other funds and holdings divested would follow in additional amendments.

The CEO's statement declared a total divestiture in MNI because they failed to meet their minimum standards. While risk levels may vary from fund to fund, it would be very unusual for a company to set minimum standards for market cap that varied across their spectrum.

Anonymous said...

Apology accepted, however, in the grand scheme of things whether you (re: F&J) were right or wrong really doesn't matter.

Even for them to exit the stock, they would have to have sold the stock to someone else.

The only big news maker with this stock should either be Chapter 11, or it hits $5.

Anonymous said...

This is unpossible! Teh bloggerz never get anything wrong! Only the evil MSM!!11!!!!

Anonymous said...

But enough about inaccuracy -- what about the problems and concerns of John Altevogt?

John Altevogt said...

I be here. Your every wish for news from KC will be fulfilled.