Huber Capital Management is coming out against Teekay Tankers’ acquisition of Tanker Investments Ltd (TIL) due to what it calls a “sub-optimal capital deployment strategy” at the Teekay Corp-controlled company, according to a regulatory filing.
California-based Huber Capital, which has around $3bn under management through its mutual funds, has accumulated a 10.2% stake in Teekay Tankers since May.
In its filing revealing the stake, it said Teekay would recognise “a materially higher rate of return on capital over the long run if capital were deployed through share repurchases as opposed to purchasing related party assets at prices at or above what others are willing to pay.”
