Hedge Fund Solutions ‘ will be doing a multi-part series via Valuewalk over the next month. The research firm’s catalyst equity research report weekly research highlighting activist investment campaigns.
See Highly Probable Activist Investing Targets here
Hedge Fund Solutions: Activist Investment Campaigns
Michael Mauboussin: Here’s what active managers can do
The debate over active versus passive management continues as trends show the ongoing shift from active into passive funds. Q2 2020 hedge fund letters, conferences and more At the Morningstar Investment Conference, Michael Mauboussin of Counterpoint Global argued that the rise of index funds has made it more difficult to be an active manager. Drawing Read More
Aegerion Pharmaceuticals (AEGR)
Activist Investor: Sarissa Capital
Catalyst: On March 31 AEGR entered into a settlement agreement with Sarissa to appoint one representative to the board immediately and one additional representative on January 1, 2016.
Comment: We initially covered AEGR on February 5, 2015 when Sarissa Capital disclosed a 5.76% “active” stake.
ASB Bancorp, Inc. (ASBB)
Activist Investor: Lawrence Seidman
Catalyst: On April 1 Seidman disclosed a 5.89% “active” stake and said he has had several conversations with senior management about ways to maximize shareholder value.
Comment: We initially covered ASBB on October 24, 2011 when Joseph Stilwell disclosed an 8.3% “active” ownership stake (Stilwell no longer owns ASBB).
Carbonite, Inc. (CARB)
Activist Investor: J2 Global (JCOM)
Catalyst: On April 1 J2 withdrew its nomination and communicated to CARB that it is only interested in purchasing part of its business (the endpoint business).
Comment: We initially covered CARB on November 5, 2012 when JCOM disclosed a 9.9% “active” ownership stake and announced that its offer to acquire CARB for $10.50/share was rejected by the board.
On February 7, 2014 we reported that Discovery had disclosed a 5.9% “active” stake (avg. cost $11.33)
On December 2 JCOM offered to purchase CARB for $15/share in cash
On December 4 Discovery Capital (7.8% at an avg. cost of $10.99) sent a letter to CARB recommending the board form a special committee to hire an investment bank to contact potential alternative strategic and financial buyers. http://www.sec.gov/Archives/edgar/data/1312548/000157104914007009/ex-1.htm
On December 10 J2 sent a letter to CARB requesting a response to its $15/share proposal.
On December 24 J2 commenced an unsolicited tender offer to acquire CARB for $15 per share.
On March 2 J2 withdrew its tender offer and formally nominated three candidates to the board.
On March 3 CARB announced that Engine Capital has nominated three candidates.
Christopher & Banks Corporation (CBK)
Activist Investor: Macellum Retail opportunity Fund
Macellum sent a letter to CBK’s Chairman criticizing CEO attrition and improper board oversight, and suggested maximizing value through a sale.
Ciber, Inc. (CBR)
Activist Investor: Bobby Stevenson
Catalyst: Three CBR directors are resigning and the Company agreed to add Bobby Stevenson and two additional directors to a reconstituted board.
Comment: We initially covered CBR on February 27 when Lone Star Value (3.6% shareholder) announced it had nominated three director candidates to the board and issued a press release criticizing the board’s poor performance, corporate governance and compensation practices.
Essex Rental Corp (ESSX)
Activist Investor: Casey Capital
Catalyst: On April 1 Casey Capital nominated three individuals to the board, sent a letter to shareholders outlining why, and submitted a Demand to inspect the company’s shareholder list.
Comment: We initially covered ESSX on February 26 when Casey Capital disclosed a 5.9% “active” stake and sent a letter to the board requesting they examine strategic alternatives and add one representative from Casey to the board.
Central GoldTrust (GTU)
Activist Investor: Polar Securities
Catalyst: On April 2 Polar nominated candidates for election to the GTU board.
GTU urged shareholder to reject the nominees
Comment: On February 12 Pekin Singer Strauss (6.4% shareholder) announced it supports Polar Securities proposal to allow redemptions of 100% net asset value for those requesting a gold redemption and 95% net asset value for those requesting cash redemption.
GTU is a Canadian-based closed-end fund that owns and holds physical gold bullion
Polar Securities announced plans to reconstitute the board for the purpose of enacting a plan to reduce the fund’s discount to NAV.
Hamilton Bancorp (HBK)
Activist Investor: Maltese Capital
Catalyst: On April 2 Maltese Capital disclosed a 9.8% “active” stake in HBK
Comment: We initially covered HBK on October 22, 2012 when Joseph Stilwell disclosed a 9.2% “active” ownership at an average cost of $11.54/share.
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