Great Wolf Resorts shareholder wants changes, board representation

By Lisa Kerner

Charlotte, N.C., Feb. 4 - Great Wolf Resorts, Inc. investor Eric D. Hovde said he finds the company's operating performance and return on invested capital to be unsatisfactory.

Hovde blamed the poor performance on a lack of board leadership, a "disappointing management team" and a failure of the board members to have any meaningful ownership of Great Wolf's shares.

The investor, a trustee of the Eric D. and Steven D. Hovde Foundation and the co-founder, president and chief investment officer of Hovde Capital Advisors LLC, believes that shareholder value would be enhanced if the board:

• Contains directors with a meaningful equity ownership interest in Great Wolf;

• Begins immediately an independent process to fully evaluate the company's strategic options; and

• Reduces the company's expenses and unnecessary overhead.

Hovde made the recommendations in a schedule 13D filing with the Securities and Exchange Commission.

In addition, Hovde has nominated himself, Richard T. Murray III and Eric S. Lund for election to Great Wolf's board at the company's 2008 annual meeting.

Murray is a senior investment analyst with Hovde Capital and Lund is the co-founder and chief operating officer of S&L Hospitality, a privately held real estate development company.

According to the filing, Great Wolf's board chairman Joseph Vittoria rejected Hovde's prior suggestion to replace two or more of the existing directors with directors who represent the company's significant shareholders.

The investor beneficially owns some 1.73 million, or 5.6%, of the company's outstanding shares. On Feb. 1, the reporting persons acquired 122,076 shares in the open market for $8.53 apiece.

Great Wolf is a family entertainment resort company based in Madison, Wis.

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