Cannabis And Canada Mark A Year Of Activist Short Campaigns

Cannabis And Canada Mark A Year Of Activist Short Campaigns
Image Source: PowerfulJRE/YouTube (screenshot)

Australia and Canada experience record numbers of activist short campaigns as global volumes continue decline from 2015 peak.

Play Quizzes 4
Activist Short Campaigns
rawpixel / Pixabay

Activist short sellers launched 155 campaigns in 2018, according to data from Activist Insight Shorts that was quoted in The Activist Investing Annual Review 2019, produced by Activist Insight in association with Schulte Roth & Zabel.

Get Our Activist Investing Case Study!

Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!

Q4 hedge fund letters, conference, scoops etc

How A Weakening PE Market Serves As Another Sign Of A Weakening Economy

InvestAmid the turmoil in the public markets and the staggering macroeconomic environment, it should come as no surprise that the private markets are also struggling. In fact, there are some important links between private equity and the current economic environment. A closer look at PE reveals that the industry often serves as a leading indicator Read More

That number was down 18% from 2017’s 189 campaigns, and 45% from 2015’s 280 campaigns.

Even so, 2018 was a bold year for activist shorts, who launched a record number of campaigns in Australia (5) and Canada (22 – beating 2016’s 21, and more than double 2017’s nine campaigns). Another notable change in 2018 was the size of targets: 41% of companies targeted by activist short campaigns had a market capitalization over $2 billion, up from 29% during 2017.

The Annual Review also named its top five activist short sellers of the year, naming Citron Research in first place, followed by Spruce Point Capital Management, and Viceroy Research.

While Tesla was one of the most talked-about activist short campaigns of the year, cryptocurrency and cannabis stocks were also targeted frequently. Six of Citron Research’s 14 campaigns were cannabis stocks, while Hindenburg Research landed fourth in the top five on the strength of the near-term impact of its joint short report on Aphria – although the stock went on to return to its previous level amid governance changes and a hostile bid, indicating the volatility of the sector.

Activist Short Campaigns


Annual Review editor Josh Black said: “Activist short sellers may have launched fewer campaigns in 2018 but they made their presence felt. A more volatile market plays to their strengths, while the emergence of new industries provides winners and losers from which they can pick their targets.”

The data were collected as part of an article on short campaigns in 2018 by Activist Insight contributor Eleanor O'Donnell that featured commentary by industry experts, which can be downloaded here. If you are an Activist Insight subscriber, simply log in to your account and access the reports page to view your copy.

The top five short sellers of 2018, as ranked in the Activist Investing Annual Review 2019.

Activist Short Campaigns

Updated on

Financial news and data providers Activist Insight and Proxy Insight announced in October 2020 that they had merged to form Insightia, a leader in the field of public company information. Activist Insight was formed in 2012 and offers an extensive range of products including Activist Insight Online, Activist Insight Governance, Activist Insight Vulnerability, Activist Insight Shorts, Activist Insight Monthly magazine, and The Activist Insight Podcast. Proxy Insight has quickly become the world’s leading source of information on global shareholder voting, covering such hot topics as director and auditor elections, “say on pay” resolutions and environmental, social, and governance (ESG) proposals.
Previous article It’s Back To Risk-On For Active Managers
Next article Buffett And Munger: The Worth Of A Pound Of Cure (2017 Meeting)

No posts to display