Guess Who's Suddenly Bullish on New York Times Co.?

By Fitzgerald, Mark; Saba, Jennifer | Editor & Publisher, August 21, 2008 | Go to article overview
Save to active project

Guess Who's Suddenly Bullish on New York Times Co.?


Fitzgerald, Mark, Saba, Jennifer, Editor & Publisher


Here's something you don't see much of in these challenging times: A once-hostile newspaper agitator turned newspaper champion.

In the past several days Harbinger Capital Partners, which holds roughly a 20% stake in the New York Times Co., has been making bets that shares of the New York Times (NYSE: NYT) will head north in the future.

According to recent documents filed with Securities and Exchange Commission (SEC) on Wednesday, Harbinger is putting on the table roughly 1.7 million "notional" Class A New York Times shares in a series of equity swaps. The reference prices range from $12.75 to $13.90.

The hedge fund has engaged an unnamed counterparty, which has agreed to pay Harbinger if stock in the New York Times rises over an unspecified time period. Harbinger would collect the difference between the reference prices and the future prices. If Harbinger's hunch turns out to be incorrect and the shares do indeed fall below the reference prices, then the hedge fund has to pay the difference to the counterparty.

At any time, Harbinger can pull out of the agreement, according to SEC filings.

As of late morning, shares of the New York Times were trading down 11 cents to $12.87 near the low end of its 52-week range of $12.08 to $22.56.

Harbinger has been making some wise bets of the course of the year. According to Portfolio.com, the hedge funds' returns for 2007 were up 116% and through the end of June it gained 40%.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Guess Who's Suddenly Bullish on New York Times Co.?
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?