

Please try another search
By Svea Herbst-Bayliss
BOSTON (Reuters) - Investment firms Sachem Head Capital Management and Soros Fund Management exited their positions in Peloton (NASDAQ:PTON) during the first quarter as the stock tumbled and the fitness company replaced its CEO, under pressure from an activist investment firm, regulatory filings made on Friday showed.
Peloton, which makes exercise bikes and treadmills and had become a market darling during the pandemic, faced heavy selling during the first quarter and into the second quarter as the pandemic eased and people returned to gyms.
Since January the stock price has tumbled 55% to close trading at $15.87 on Friday.
Sachem Head sold 1.65 million shares some time during the first quarter, the filing made late on Friday showed. The firm, which sometimes pushes companies to perform better, first invested in Peloton late in 2021 as the company's stock price was already falling. Soros Fund Management exited its position and sold 335,557 shares.
Activist investment firm Blackwells Capital, which owns roughly 5% of the company, began publicly pushing for changes in January. Within a few weeks the company said it hired Barry McCarthy, a former Spotify (NYSE:SPOT) and Nextflix executive, to replace co-founder John Foley as chief executive officer. Blackwells, which had pushed Peloton to sell itself, said in a recent presentation to it is still unhappy with management.
Both Sachem Head and Soros late on Friday released their 13-F filings which show what money managers held at the end of the first quarter. While the filings are backward-looking, they are closely watched for hints on potential trends and insight into what specific stocks managers liked or soured on.
Sachem Head also reported new positions in customer service platform Zendesk (NYSE:ZEN) as well as Momentive Global, the parent of SurveyMonkey, which Zendesk had planned to buy. Investors voted the deal down. Activist investment firm Jana Partners in February nominated four directors to sit on Zendesk's board and is pushing the company to review strategic alternatives and consider selling itself.
Sachem Head owned 1.8 million shares in Zendesk and 5.7 million shares in Momentive.
By Herbert Lash NEW YORK (Reuters) - U.S. stocks closed mixed on Monday as downbeat Chinese and New York state data kindled recession fears, but the 10-year Treasury note's yield...
By Sarah McFarlane and Aref Mohammed LONDON/BASRA (Reuters) - Iraq's oil ministry thwarted three prospective deals last year that would have handed Chinese firms more control over...
By David Shepardson WASHINGTON (Reuters) - The largest U.S. labor organization said on Monday it wants lawmakers negotiating a measure to boost funding for semiconductor chips...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.