This story was first published in our sister paper the Nashville Post.
A London-based investment firm launched two years ago has amassed a sizable stake in Surgery Partners, whose shares have lost two-thirds of their value in the past year.
The managers of Taloma Capital this week filed papers with the Securities and Exchange Commission saying they controlled nearly 2.6 million shares of Brentwood-based Surgery Partners as of Aug. 14. It was the firm’s first holdings filing with the SEC, suggesting its entire stake in Surgery Partners was built in recent weeks.
Talomon invests for the long term, its principals saying they use a private equity-style approach to a relatively limited number of investments. Early this year, they reported that they managed about $307 million for clients; based on Wednesday morning’s price, their Surgery Partners investment accounts for about 5 percent of that total.
The firm is run by Andrew Lubin and Jussi Nyrölä. Lubin is a former CEO of the London arm of Steven Cohen’s former SAC Capital Advisors group of hedge funds, which ran into trouble earlier this decade after the firm and several employees were found guilty of fraud and insider trading charges. Cohen in 2014 founded Point72 Asset Management as successor to SAC.
Word of Talomon’s interest in Surgery Partners comes after the local company has seen several top executives leave and looks to close the books on a federal investigation into its drug testing practices. Its shares (Ticker: SGRY) were changing hands early Wednesday at $6.07. Six months ago, they were trading around $12.50, a year ago at roughly $17.35.