In a letter to the directors of Altisource Residential Corp., Jeffrey Pierce, chief investment officer of activist investor Snow Park Capital Partners LP, said the firm will nominate "highly qualified" candidates for election to Altisource's board.
Snow Park said Altisource's book value of $14.03 per share is at a significant discount to the shareholder's own net asset value estimates and that Altisource's share price has declined over 20% since the company's listing in 2012 due to decisions made in the boardroom.
The firm also demanded that the company evaluate its legacy agreements, highlighting a property management agreement with Altisource Portfolio Solutions, and to rectify its "disastrous" 2015 asset management agreement, which it believes threw the stock down more than 40% while the stock prices of its peers rose about 40% in approximately the same period.
Snow Park intends to file a preliminary proxy statement with the SEC to nominate candidates for the board at the forthcoming annual general meeting of shareholders.
Altisource Residential did not immediately respond to a request for comment.
