Stewart Information Services Corp. shareholder Driehaus Capital Management LLC disclosed in an ownership filing that it now holds 2,088,918 common shares, or 8.94% of Stewart Information Services' outstanding common stock.
Driehaus Active Income Fund also disclosed an increased stake now composed of 1,665,931 common shares, or 7.13% of the company's outstanding common stock.
The group believes that Stewart Information's shares, at the time of purchase, were undervalued and represented an attractive investment opportunity. Driehaus Capital previously commented positively on the changes Stewart Information made to its board in October 2016, but in a letter attached to the Jan. 23 ownership filing, the shareholder said the company's management has continued to fail to live up to its promises.
Driehaus Capital also wrote that it believes Stewart Information Services can improve margins and grow earnings, whether as a stand-alone company or as part of a larger entity.