D.E. Shaw-Backed James River Drops as Fund May Cut Stake: Chart

  • Insurer registers hedge fund's shares in regulatory filing
  • James River had rallied amid speculation of an acquisition

James River Group Holdings Ltd., the specialty insurer that counts D.E. Shaw as its largest shareholder, tumbled in New York trading after saying in a filing that the hedge fund firm may cut its stake.

The insurer fell 3.6 percent to $32.41 at 10:12 a.m. in New York trading. James River sold shares in an initial public offering in 2014 for $21 apiece, and the stock then rallied on speculation that the company could be a takeover target amid industry consolidation. Investors may think a buyout is less likely after a filing late Thursday stating that Shaw could sell shares, according to Meyer Shields, an analyst at Keefe, Bruyette & Woods.

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