Community Health Systems Chairman and CEO Wayne Smith is looking to send investors a message. Days after his team warned that third-quarter profits would be well below analysts' expectations — and the market lopped more than $1.5 billion off the company's market cap — Smith (pictured) on Monday spent more than $900,000 to exercise a batch of stock options that would have expired in 2019 and then held on to the resulting shares. The move took the 69-year-old's total direct and indirect holdings of Franklin-based CHS (Ticker: CYH) to nearly 1.8 million shares.
Smith's big option exercise came after his largest investor, hedge fund Glenview Capital, on Friday said it had trimmed its CHS stake by about 2 percent — for proceeds of nearly $8 million — the day before, when CHS plummeted by more than 30 percent. An interesting side note to that filing: Glenview on Thursday spent nearly $15 million to add to its holdings in Tenet Healthcare as that company, too, gave up a lot of ground.
Wunderlich Securities' wealth management group has recruited a longtime UBS wealth advisor to its Franklin office. Joseph Sanders manages about $48 million in client assets and had been with UBS for almost 15 years. On the firm's website, the 29-year industry veteran (and former college football coach) says his call to move "is one I have made after a great deal of personal reflection and research. It has been a very thoughtful process centered on meeting the needs of my clients."
The principals of six-year-old investment and mutual fund manager IronHorse Capital have relocated the home office of the firm to West End from Memphis. IronHorse, which specializes in global investing, manages about $35 million. Its new headquarters is in Two American Center.
Birmingham-based Arlington Family Offices, which manages more than $10 billion in assets for high-net-worth families, has absorbed the operations of ETC Capital Management in downtown Franklin. In a release, Arlington's leaders say Tennessee is a very attractive spot for trust management and add that they have applied for regulatory permission to run an office of their private trust company here.
ETC founder Croley Graham, who is now a managing director of Arlington, is equally upbeat about the combined firms' capabilities: “Arlington’s experience, people, and systems are unmatched and will permit us to provide the absolute best in service to families, not only those in Tennessee but those moving their operations here because of Tennessee’s very favorable trust and tax environments.”
The arbiters of the Certified Financial Planner designation last week said they and local investment manager Kay Quinn in April agreed to a settlement that suspended Quinn's right to use the CFP mark until next January. At issue are a handful rules and ethics transgressions, including advising 55 Quinn Financial Partners clients to invest in a real estate securities that weren't registered for sale in Tennessee — for which the state's Department of Commerce and Insurance censured Quinn in 2013. Read the CFP Board's full release here and check out the 2013 state case against Quinn here.
POSTDATA: WARRANTY DEEDS