Vegas Golden Knights Owner Bill Foley Accused of 'Egregious' Actions in Multi-Billion Dollar Fund

An East Coast hedge fund is demanding significant transformation at Bill Foley's Cannae Holdings, the owner of the Golden Knights, amidst a falling stock price and weak corporate governance.

Carronade Capital Management, the owner of approximately 2.9 million shares of the Las Vegas company, condemned Cannae's business in a letter it made public recently.

The company demanded cost reductions, improved capital allocation, and the appointment of independent board members to provide accountability.

It asserted that shareholders have been damaged by poor returns and that the board members are too interconnected. Cannae's shares traded Thursday at $18.84, a 59% drop from early 2021.

Carronade also faulted the board's recent moves, including a proposal to repurchase up to half of Foley's shares at a premium if he retires after a director is elected in spite of his wishes. His pay was branded excessive by the hedge fund.

Foley serves as Cannae's chairman, CEO, and chief investment officer, and is its largest shareholder. Cannae, in turn, said it has already begun taking actions to create long-term value.

It cited its efforts in returning capital to shareholders, reshaping investment in private firms with cash-generating streams, and streamlining the operations of its portfolio.

Cannae has said it has bought back 35% of its shares since 2021, returning $738 million to shareholders, and has raised $470 million selling stock.

Forbes puts Foley's fortune at $2.8 billion, and he has long controlled real estate transaction-services giant Fidelity National Financial, from which Cannae was spun off in 2017.