Activist sponsors, weak Monday, but major activist stories and news for May 11 below. We’re taking leads at @activiststocks, daily newsletter signup, ICYMI the latest newsletter is here.
- Tempur took the resignations of the three directors (CEO included) that got a vote of no confidence on Friday. CEO is stepping down tomorrow. H Partners got the win here, owning around 10%. A fairly big surprise; props to H Partners’ marketing. What they do now, who knows – their 100-page presentation did little to outline exactly how to fight off competition in an increasingly commoditized industry [100 pg. presentation]
- Trian Partners has a full page ad in the Wall Street Journal today [see it here], trying to convince shareholders to vote for them in the proxy battle. Again, Peltz’s downfall will be the large passive pansy investors like Vanguard and the company’s high number of retail ‘sheep’ investors [link to Peltz’s downfall: Passive pansies & sheep]
Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More
- Keeping with the DuPont theme, @stephengandelhas a piece at Fortune about the 4-month long battle between Trian and Peltz and whether it’s a net negative for activism. It’s a long read, but as you might imagine, the thesis is that if Peltz wins it’ll encourage other activists to take on larger targets [link]