Ricky Sandler's hedge fund just made a killing on its Keurig Green Mountain stake
Getty Images/Scott Olson
Eminence Capital, the hedge fund manager led by Ricky Sandler, has just made hundreds of millions of dollars on its Keurig Green Mountain long position.
On Monday morning, the coffee K-cup maker announced it was being acquired by JAB Group for $92 per share, a deal valued at $13.9 billion.
Keurig's stock closed Friday at $51.70 per share, putting the acquisition price at a 78% premium.
Sandler's hedge fund owns 10,658,752 shares, made up of 6,176,952 shares and 4,481,800 shares obtainable upon exercise of options. That adds up to a 7.2% stake, according to a regulatory filing from late November.
According to previous regulatory filings, Sandler's hedge fund first built its stake in Keurig in the second quarter. The share price at the end of the third quarter was $76.23.
He added to the position in the third quarter. The share price ended that quarter at $52.14.
On November 19, Eminence really upped its stake, making it one of the largest shareholders. The share price on that day was $47.88.
From Friday's close, Sandler's position has increased in value by about $429.5 million.
Not a bad way to start a Monday.
NOW WATCH: A Harvard scientist who's studied coffee for 20 years explains why the drink is amazing