Toymaker Funko Attracts Deal-Minded Investor Pleasant Lake

Hedge fund Pleasant Lake Partners disclosed it’s an investor in toymaker Funko Inc., and is pushing the company to launch a formal sale process that it said it could participate in.

Pleasant Lake said in a filing Thursday that it accumulated a stake based on a view that Funko’s shares are undervalued and represent an attractive investment opportunity.

The hedge fund said it plans to engage with Funko’s board and management on operational and strategic initiatives to enhance shareholder value, arguing that the best path forward is “the immediate commencement of a robust and comprehensive strategic alternatives process” actively ...