JASON
ADER
Jason Ader is known for his knowledge of investing, which
stems from his profitable experiences as a gaming and
lodging analyst for many years. Having been ranked as the
top analyst in 2000 by Institutional Investor, it was no
surprise that Ader would later head his own successful
hedge fund,
Hayground Cove Asset Management in March 2003. Ader’s
hedge fund has made impact in the industries of: fast
food operations, gaming, and hospitality.
In terms of fast food operations,
Jason Ader has turned the popular diner Denny’s into
something more profitable. In an article profiled by
James Altucher, notable restaurant and gaming analyst,
Jason Ader had used his hedge fund, Hayground Cove to
file a
13D on the restaurant. Altucher’s article indicated
that many should be pleased and looking forward to the
savvy investor, Jason Ader filing a 13D on the company.
In Altucher’s article on
Ader, he described that Denny's business of cash flow
was second-rate overall. In the previous year, it
produced $54 million in cash from operations, which was
about the same amount it planned to spend on capital
expenses such as fixing up restaurants and purchasing
restaurants for the next year. Altucher suggested that
Denny’s had a flat revenue growth and $550 million in
debt. However, the article ultimately suggested that Ader
would turns things around, as he will unlock more value
for Denny’s.
Seven months later, in
another article by Altucher, he reports that after he
had profiled Denny's, the stock went from $3.90 to just
over $5. He assumed that the strong increase was most
likely a result of a combination of the micro-caps’s
strong first quarter, rumors of the food chain being put
up for sale, and a strong report from research group CL
King. Jason Ader and Denny's are still viewed as an
ongoing story on Wall Street, and the outcome remains to
be seen. Jason Ader's hedge fund,
Hayground Cove owns $30 million worth of Denny's
stock.
Concerning the gaming industry, Jason Ader has also been
recognized in five yearly Wall Street Journal All-Star
Analysts Surveys, and was voted the #1 US Gaming and
Lodging analyst in the prominent Greenwich poll of
buy-side analysts in 2000 and #1 for industry
conferences, field trips, theme parks, and stock-picking
in 2001.
In October 2, 2006, according to a Schedule
13D filed with the Securities and Exchange
Commission, after superstar casino analyst
Jason Ader reported a 5.53% stake in the company,
shares of Isle of Capri Casinos Inc. (ISLE) went up from
0.9% to $21.53 after.
In the 13D filing on Isle
of Capri Casinos Inc., it was disclosed that
Jason Ader of Hayground Cove Asset Management
beneficially owns nearly 1.9 million shares of the
company. Through this act, Ader has proved once
again why he is constantly recognized as a top
analyst.
In terms of hospitality, Jason Ader and his hedge fund,
Hayground Cove play major roles as investors in the
hospitality industry. Ader’s hedge fund is a majority
owner of India Hospitality Corporation, which is a
Special Purpose Acquisition Corporation that takes part
in partnerships mainly with Indian businesses in the
hospitality industry. In addition, Hayground Cove serves
as the owner of
Great Wolf Resorts.
The
India Hospitality Corporation is a Special Purpose
Acquisition Corporation that was designed to set up
partnerships with only an Indian business, businesses, or
assets specifically relating to the hospitality, leisure,
tourism, travel, and related industries. With Ader as the
lead, IHC has pursued ventures with hotels, resorts,
timeshares, apartments, and restaurants. While India
Hospitality Corps’ partnerships may develop in any of
these sectors, the primary focus is on the hospitality
industry, one of Jason Ader’s specialties, beginning with
those initiatives in India.
Under the leadership of Jason
Ader, who is Chief Executive Officer and
Chairman of the Board of Directors, India
Hospitality Corporation stock is bought and sold on
the Alternative Investment Market (AIM) under the
ticker IHC. The AIM is the London Stock Exchange’s
international market for developing companies. The
businesses traded on this exchange differ greatly,
from small start up companies looking to grow to
those that are established and looking to develop
some more. In its initial public offering in August
2006, India Hospitality Corporation raised 100
million dollars of capital.
One of the
India Hospitality Corporation’s acquisition was India
based Mars Restaurants Private Limited, which is a hotel
and restaurant company; and SkyGourmet Catering Prive
Limited, an airline catering company headquartered in
India. The deal was for a reported 110 million U.S.
dollars, paid mostly in cash as well as shares of IHC
stock.
Another business that Hayground Cove has taken ownership
in is the Great Wolf Resorts. Hayground Cove is taking an
active responsibility in the management of the company.
The hedge fund owns 8.7% of Great Wolf Resorts’ stock,
which Jason Ader considers to be “undervalued and
represents an attractive investment opportunity.”
However, part of this investment opportunity for
Hayground Cove is making sure that the money is utilized
in the best possible way.
Jason Ader did not hesitate to exercise his authority
and his knowledge as he communicated with Great Wolf
Resorts that it was the right time was to sell the
company. Ader suggested that the Great Wolf Resorts’
stock has a potential value of more than 16 dollars per
share, but the monetary value was far below that. As a
solution, Ader conveyed in a note that the most effective
method to increase shareholder value was through “A SALE
OF THE COMPANY.”