A Promising Year Ahead for Activist Investors
In 2023, data suggests that this year could be a significant one for activist investors. According to Bloomberg data, there were 823 new activist campaigns launched globally, indicating a 24% increase compared to the previous year. However, due to the focus on smaller companies and closed-end funds, most investors were unaware of the extent of these boardroom battles, leading to minimal media attention.
One particular standout in 2023 was Elliott Management, which initiated 15 campaigns throughout the year, ranking at the top of the league table for campaigns targeting companies with market caps exceeding $1 billion. Following closely behind were three runner-up funds, each launching seven campaigns.
Apart from their campaign count, Elliott Management also achieved notable victories. They successfully replaced CEOs at four companies, including Crown Castle and Goodyear Tire & Rubber. Additionally, through settlements, they secured 16 board seats at six companies, effectively avoiding costly proxy battles.
As we anticipate what lies ahead in 2024, the battle for control at Walt Disney is shaping up to be a major highlight. Four activists are currently vying for changes within the entertainment conglomerate, with notable players including Trian Fund Management and ValueAct Capital.
Looking beyond specific developments, it is important to acknowledge that 2024 is expected to be a turbulent year for markets as investors assess the Federal Reserve's stance on interest rates. Volatility often presents opportunities for activists to take advantage of price discrepancies and strategically build their positions.
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