It's been a rough week for shareholders of Vestis (VSTS), a B2B uniform and workplace supplier, who witnessed the value of their shares plummet from roughly $18.50/sh to under $9/sh last Thursday, all in one day, after the company significantly lowered its FY2024 outlook.
What may have been a nightmare for some, however, became a buying opportunity for others - namely, for Keith Meister, the protege and former right-hand man of notorious activist investor Carl Icahn.
Meister, who left Icahn Enterprises in 2010 to start and run Corvex Managament, held small stake in Vestis even prior to last week's events.
Late last night, however, he disclosed a May 2nd - May 8th buying spree that saw his position balloon to a grand total of 16,591,833 shares, or a roughly 12.6% stake, making him the company's largest shareholder.
A look at the transaction history implies that Corvex's holdings now have an average cost of around $12.50 per share.
With the stock still trading below these levels, around $11.40 at the time of this writing, and given the magnitude of opportunistic buys over the past several days, it seems fair to assume the fund may have a longer-term play in mind.
Meister may not be as (in)famous as his mentor Icahn, but according to the fund's own website it's purpose is the "ability to become active in situations," and "invest in high-quality businesses undergoing change," hence, Corvex's more active involvement with the company can not be ruled out.
For now, the market appears to appreciate Meister's stake - shares are holding nearly 9% higher as of midday Thursday, in VSTS' best day since last week's plunge.