Activist hedge fund Donerail Group is pushing US boat retailer and marina operator MarineMax to consider strategic alternatives – including a potential sale or a change in leadership – amid mounting frustration over performance and governance, according to a report by Reuters.

The report cites unnamed sources familiar with the matter as revealing that Donerail, which holds roughly 4% of MarineMax shares, has criticised the company’s capital allocation, strategy, and financial oversight under CEO Brett McGill. Since McGill took over in 2018, the company's share price has underperformed the S&P 500 by more than 120% and trails the S&P 600 Consumer Discretionary Index by 56%.

The hedge fund’s concerns follow MarineMax’s 2022 acquisition of Island Global Yachting (IGY), a deal that significantly increased leverage and has faced integration challenges. Last year, Mexico’s navy seized IGY’s Marina Cabo San Lucas over a lease dispute, further denting investor confidence.

MarineMax, valued at about $578m, has made governance changes, including board refreshment and the removal of its CFO from the board, but Donerail is said to remain dissatisfied. The firm has held several meetings with management in recent months and is now escalating its campaign ahead of the next director elections.

Donerail joins other investors calling for change. Levin Capital previously urged the company to review strategic options, while Island Capital’s Andrew Farkas has publicly expressed interest in reacquiring IGY Marinas.