57% Of Activist Firms Founded After The Year 2000 via Activist Insight
With levels of activism continuing to soar, Activist Insight looked at the data it has accumulated on 565 investors to provide an overview of their characteristics.
As expected, they are a diverse bunch. Just under 20% pursue activism as a dedicated strategy, compared to 62% on an occasional or partial basis. Fully 56% of activists profiled on Activist Insight Online have launched a public campaign at just a single company since 2010. Yet few turn their backs on activism completely; just 1.6% of profiles are classified as “no longer activist”.
Has including ESG become a necessity for investors?
ESG (environmental, social, governance) has become a hot topic in recent years, especially lately with the debate over whether pension funds should be able to factor in ESG when choosing investments. At Morningstar's recent conference, the firm argued that ESG has become a requirement for long-term investors. Q2 2020 hedge fund letters, conferences and more Read More
In line with the US being seen as hub of activist activity, the investors we profile have 424 offices there. The UK comes a distant second, with 115 offices in that country, followed by Canada on 61 and Australia on 21.
Despite their roots being identified in the 1980s and even earlier by some commentators, activism is still a relatively young phenomenon. Of those active today, 57% were founded after the year 2000, with 223 in the decade from 2001 to 2010 and 100 since the beginning of 2011.
And despite the growing prevalence of activists with large stakes in mega-cap firms, most primary focus activists are too small to disclose the size of their assets under management. Of those that do, 48% manage $500 million or less.