Shareholder Activism Meets Social Activism

Going back to where it started, we’re rolling out a free daily newsletter. If you want this in your inbox each morning, please sign up here. Activist news for Apr. 14. Lots of good reads today – check out the “other good reads” section. A bit on Yahoo, which I’ve hated for a long time (still not convinced on the bull thesis) and a deep investigative piece by @ldelevingne on Platinum Partners.

Dan Loeb, Third Point LLC founder

Stake changes

  • Dan Loeb’s Third Point takes its stake in David Einhorn’s Green Brick Partners up by 100k shares and now owns 16.8%. We’ve covered Green Brick in a deep dive in Activist Strategy – learn more here.
  • Carl Icahn continues to sell off its Hologic stake. Recently dumped half its stake and now owns 3.6% – had been activist since 2013.News
  • Lawndale Capital takes to task P&F Industries over some shareholder activism mishaps. The fund owns 11.3% and has been activist since 2010. Recent comments focus on getting P&F to regularly return capital to shareholders. Also wants to destagger the board.
  • The Bill Ackman Pershing Square now up 6.9% in April and, only down 20.5% year to date. Just last week the public hedge fund was up 1.3% in April and down 24.6% year to date. Here’s a primer on Bill Ackman’s philosophy on correlation with the market.
  • Bank of New York board member and Train Partners partner, Edward Garden says he is pleased with the progress the trust and custody bank has made over the last year in pumping up profit margins and cutting expenses. Trian owns 3% of Bank of New York.

Catalyst watchlist

  • Starboard Value might be pushing for a sale of DepoMed.

Stories

  • Social activism meets shareholder activism in the battle to increase diversity on boards continues, now at Chipotle [link] Chipotle Mexican Grill shareholder CtW Investment Group on Wednesday urged investors not to re-elect two long-time board members, saying the chain’s recent food safety crisis shows the company needs a board that is more independent and also more diverse in race and gender.

Other good reads

 

Shareholder Activism
Shareholder Activism
  • Yahoo! Worth $44 if a Team of Microsoft and Others Bought Patents, Opines SunTrust [ about activist investing
    • Shareholder Democracy: A Primer on Shareholder Activism and Participation [link]

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Shareholder Activism