Investment firm specializing in 'out of favor companies' takes 7 percent stake in Lee Enterprises

A Stamford, CT investment firm that specializes in "stressed, distressed and out of favor companies" has acquired a 6.9 percent stake in Lee Enterprises, the Davenport-based media company which owns the Quad City Times.

Archview Investment Group L.P. reported today (2/14) that it had acquired 3.8 million shares of Lee stock as of Dec. 31, 2016. U.S. Securities and Exchange Commission (SEC) rules require disclosure when an individual or company acquires 5 percent or more ownership in a publicly traded firm.

Archview was founded in 2009 by principals Jeff Jacobs and John Humphrey. The firm's web site says it is "an institutional alternative investment firm" which focuses on "event-driven credit opportunities within the capital structures of stressed, distressed and out of favor companies."

Another firm, Franklin Resources, Inc., reported last September it had acquired an 8.6 percent ($18 million) stake in Lee. The shares of Franklin are part of its Franklin Mutual Series Fund-Mutual Quest Fund.

Lee reported higher earnings, but lower operating revenues in its most recent quarter ended Dec. 25, and company executives promised to continue to reduce expenses and pay down the company's $599-million debt.