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Ricky Sandler's hedge fund just made a killing on its Keurig Green Mountain stake

Dec 7, 2015, 19:48 IST

Getty Images/Scott Olson

Eminence Capital, the hedge fund manager led by Ricky Sandler, has made hundreds of millions of dollars this morning on its Keurig Green Mountain long position.

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On Monday morning, the coffee K-cup maker announced it's 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, which includes 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 company in the second quarter. The share price at the end of the third quarter was $76.23.

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He added to the position in the third quarter. The share price ended that quarter $52.14.

On November 19, Eminence really upped its stake, making it one of the largest shareholders. The share price on November 19 was $47.88.

From Friday's share price close, Sandler's position has increased in value by $429,547,706.

Not a bad way to start a Monday.

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