Pirate Capital, the $1.8 billion activist firm founded by Tom Hudson, could face substantial redemptions by yearend. But the effect on the firm could be minimal. Pirate could hold a large cash hoard from recent stock sales and the impending sale of Intrawest, a large holding. As a result, the firm is in shape to meet hundreds of millions of dollars in potential redemptions should they materialize.
Investors must soon determine whether to remain with the firm following this year's uneven performance and the near-total departure of the firm's senior investment staff. Most of