Business Leaders

Jason Ader is a top analyst that has earned a respectable reputation for his expertise in investing; which comes from his successful experiences as a gaming and lodging analyst for many years. Having been recognized as the top analyst in 2000 by Institutional Investor, it was inevitable that Ader would eventually launch his own successful hedge fund, Hayground Cove Asset Management; which took off March 2003. Ader’s hedge fund has specifically had a strong effect in the sectors of: fast food operations, gaming, and hospitality.

Concerning fast food operations, Jason Ader has transformed the popular diner, Denny’s, into a more profitable commodity. In a report profiled by James Altucher, he noted how Jason Ader had used his hedge fund, Hayground Cove to file a 13D on the restaurant, Denny’s. Altucher’s article suggested that many had a lot to look forward to with someone with the investing caliber of Jason Ader filing a 13D on the company, since Ader’s last batch of a million shares (in which owned 6 million) cost him between $4.52 and $5.83. At that Tuesday, Denny's closing price was $4.02.

In Altucher’s article on Ader, he described that Denny's business of cash flow was second-rate overall. In the previous year, it had made $54 million in cash from operations, which was nearly the same amount it planned to spend on capital expenses such as improving restaurants and purchasing more restaurants for the next year. Altucher suggested that Denny’s had a flat revenue growth and $550 million in debt. However, the article ultimately suggested that Ader would turns things around, as he will unlock more value for Denny’s.

Seven months after Altucher’s article, another report by Altucher as well, reported that after he had profiled Denny's, the stock went from $3.90 to just over $5. He assumed that the strong increase was most likely a result of these various factors: the micro-caps’s strong first quarter, rumors that the food chain would be put up for sale, and a strong report from research group CL King. Jason Ader and Denny's are still viewed as an ongoing story on Wall Street, and the outcome is still pending. Jason Ader's hedge fund, Hayground Cove owns $30 million worth of Denny's stock.

In the gaming sector, Jason Ader has been known to be one of the best analysts. Having been recognized in five yearly Wall Street Journal All-Star Analysts Surveys and being voted the #1 US Gaming and Lodging analyst in the prominent Greenwich poll of buy-side analysts in 2000 and #1 for industry conferences, field trips, theme parks, and stock-picking in 2001, Ader is clearly a leader in the gaming industry that deserves recognition.

From the beginning, Jason Ader was never your stereotypical number cruncher that always worked in the office. Rather, he was working on site; walking around the Las Vegas strip and analyzing the hotels he was assigned to cover. In doing this, he found out firsthand what was exactly attracting people and making them spend at the casinos and hotels.

Known to frequently visit Las Vegas, Jason Ader carries out his research thoroughly to amply report the true facts as experienced by the customers before even considering investing in the casinos. Furthermore, through the many personal conversations that Ader has with people, he is able to provide relevant information on what exactly is beneficial for the public and his company.

Some of Ader’s success in the gaming industry is with the Isle of Capri. In October 2, 2006, Ader filed a Schedule 13D with the Securities and Exchange Commission. The notable casino analyst, Jason Ader reported a 5.53% stake in the company, shares of Isle of Capri Casinos Inc. (ISLE) went up from 0.9% to $21.53 after. In the 13D filing on Isle of Capri Casinos Inc., it was disclosed that Jason Ader/ Hayground Cove Asset Management beneficially owned about 1.9 million shares of the company. With this move, Ader has proved to the world once again why he is constantly recognized as the top analyst.

In the field of hospitality, Jason Ader and his hedge fund, Hayground Cove play major roles as investors in the industry. Ader’s hedge fund is a majority owner of India Hospitality Corporation, which is a Special Purpose Acquisition Corporation that acts in partnerships mainly with Indian businesses— assets specifically relating to the hospitality, leisure, tourism, travel, and any other related Indian industries in hospitality. In addition, Hayground Cove also serves as the owner of the Great Wolf Resorts.

With Ader as the leader, IHC has pursued ventures with hotels, resorts, timeshares, apartments, and restaurants. While India Hospitality Corps’s partnerships may develop in any of these sectors, the primary focus is on the hospitality industry; which is one of Jason Ader’s specialties, especially with those initiatives in India.

Under Jason Ader’s direction, he serves as the Chief Executive Officer and Chairman of the Board of Directors and he has India Hospitality Corporation stock bought and sold on the Alternative Investment Market (AIM) under the ticker IHC. The AIM is the London Stock Exchange’s international market for developing companies. The businesses traded on this exchange differ to a great extent, from small start up companies looking to grow to those that are established and looking to develop some more. In its initial public offering in August 2006, India Hospitality Corporation raised 100 million dollars of capital.

One of the India Hospitality Corporation’s acquisition was India based Mars Restaurants Private Limited; a luxury hotel and restaurant company, and SkyGourmet Catering Private Limited; an airline catering company based in India. The deal was for a reported 110 million U.S. dollars, paid mostly in cash as well as shares of IHC stock. However, Jason Ader and Hayground Cove are still very much active as well outside of India.

An additional business that Hayground Cove has taken ownership in is the Great Wolf Resorts. Hayground Cove has shown that they have taken an active responsibility in the management of the company. Jason Ader’s hedge fund owns 8.7% of Great Wolf Resorts’ stock, which Ader considers to be “undervalued and represents an attractive investment opportunity.” However, part of this investment opportunity for Hayground Cove is making sure that the money is put to use in the best possible way.

Upon acquisition, Jason Ader showed no hesitation when in a display of power and knowledge he ordered Great Wolf Resorts that it was the time to sell the company. Ader indicated that the Great Wolf Resorts’ stock had a potential value of more than 16 dollars per share, but the monetary value was far below that. As a solution, Ader conveyed in a note that the most effective move for the company at that moment was to increase shareholder value through a note that read, “A SALE OF THE COMPANY.” Once again, Ader move benefited his hedge fund.