New Fairfax Investor backs management

This week it was confirmed that Paul Xiradis (right) through his boutique fund Ausbil Dexia has taken a significant stake in Fairfax Media, which operates the Fairfax Radio network. 

Xiradis has been building the stake through a series of on-market transactions, and this week moved over the 5% threshold requiring disclosure to the market regarding the shareholding, which is worth just under $70 million.

Xiradis is now the 7th largest shareholder in Fairfax Media and has offered qualified support for Fairfax Media management and commented that the both the company and the media sector more broadly is being under valued on the market presently.

He said; "It's a stock that we've looked at for some time (and) we see some good long-term value in. We've bought into the stock (so) therefore by default (we support management), but like all things we will assess as time goes on".

Gina Rinehart's Hancock Prospecting, a major shareholder in Fairfax, has welcomed the arrival of Xiradis, with her representative John Klepec telling The Australian;

"We are supportive of anyone buying the stock. We're aware that some of the, for want of a better word, stale shareholders have been selling stock, people buying in now see value upside as we do".