Investor takes stake in Chico's

Keep an eye on Blue Harbour Group.

The private equity firm based in Greenwich, Conn., recently filed a statement with regulators saying it had acquired 5.6% of Chico's FAS, the women's retailer headquartered in Fort Myers. The firm paid about $125 million for 9 million shares of Chico's, which is publicly traded on the New York Stock Exchange.

Clifton Robbins, an alumnus of private equity giant Kohlberg, Kravis & Roberts, leads Blue Harbour Group. According to its website, Blue Harbour's investment strategy is to focus on undervalued U.S. public companies that “could create significant value by implementing strategic or financial change.”

For now, what change might be in store for Chico's is anyone's guess. But recently activist shareholders have targeted cash-rich companies to return some of that money to investors. Chico's is debt free and is sitting on more than $300 million in cash and marketable securities.

But don't expect any big public shareholder revolt at Chico's like the one that recently voted to oust the board of directors at Naples-based hospital operator Health Management Associates.

“In this regard, Blue Harbour's investment approach seeks to add value by working collaboratively with company management to design and to implement strategic initiatives that unlock and create shareholder value,” Blue Harbour's strategy states.