🌎 Shareholder activism is part and parcel of capitalism and modern society today.
🌐 If you are a citizen in a democratic society, you get to vote.
🔖 Analogously, if you are a shareholder, you have a voice and the right to opine on how things should work in your company.
Today, publicly listed stocks have thousands, and for larger companies, millions of shareholders. No individual shareholder can effect big changes. When the board of directors fail in their jobs, all shareholders suffer.
That’s where activists come in.
Activists buy the shares of listed companies and effect changes. Through proposing transformational improvements, putting themselves onto the boards of companies or simply advising management via constructive dialogues behind-closed-doors, activists help their investee companies better strategize and grow.
We discussed some interesting activist names in Japan, where c.40% of listed stocks trade below book and has attracted activist attention globally. But the global activists had been busy for many years.
Warren Buffett acquired Berkshire Hathaway in an activist setting back in 1965. The 1980-2000s saw the rise of shareholder activism in US and then in Europe.
Funds like Cevian, Elliott, Hikibi Path Advisors, JANA Partners, LIM Advisors, Oasis, Pershing Square, Simplex, Starboard Value, Third Point, Trian Partners and ValueAct became very prominent.
< div>Without further ado, here’s the inaugural list of the prominent global names (ex-Japan) in alphabetical order.
Acadia Healthcare (ACHC
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