Do Hedge Funds Create Value? 3 Lessons From Danone And Unilever

Hedge funds do not have to disclose to the SEC any intentions to exert control of a company if they own less than 5% of a company. These small stakes can still have huge impact, as we have seen at corporate giants like Exxon and Nestle. Even small hedge funds can have significant influence if…

Shareholder Commons: First Annual Report

“TSC is a new NGO that is catalysing a paradigm shift in responsible investment.” … In their first year of activity, they have begun to build a field of asset owners, asset managers, advisors, and civil society organisations who want a new toolkit to ensure that profits are aligned with social cohesion and environmental preservation. They…

Activist Stewardship

Highlights from a new article on hedge fund activism on behalf of long-term shareholder value, from Robert Eccles (Oxford University), Aeisha Mastagni (CalSTRS), and Kirsty Jenkinson (CalSTRS): The time has come for “activist stewardship.” Simply put, this means putting the skills and techniques of activist hedge funds to work where a company’s financial performance is…

COVID-19 and Activism

From Sidley Austin: As the COVID-19 pandemic began to unfold in the US in early March, it quickly became clear that the crisis would act as a “poison pill” that would sharply reduce shareholder activism in the spring. Initially, many activists were preoccupied with their own survival and/ or attracting new capital rather than launching…

Boohoo Group PLC vows to rectify failings but margins remain a question

Boohoo Group PLC (LON:BOO) has vowed to address its corporate governance responsibilities after an independent review confirmed poor working conditions and low rates of pay in its supply chain. The report found that Its senior directors “knew for a fact that there were very serious issues about the treatment of factory workers in Leicester and…

Activist Trian Fund Management Takes Stake in Comcast – WSJ

Tough when the insiders have controlling shares, but then Trian is pretty savvy. It will be interesting to see where this goes. Trian Fund Management LP, a hedge fund known for pushing big companies to make operational and other changes, has launched an activist campaign against Comcast Corp. in a bet that the cable-TV and…

CERES Ties Governance to Environment

From Ceres, a new report called Blueprint for Responsible Policy Engagement on Climate Change. The full report is below. An excerpt: Companies that establish robust governance systems to address climate change as a systemic risk and align their direct and indirect lobbying efforts to support science-based climate policies will drive the creation of a regulatory…

Climate risk & board conflicts at Standard Bank – Just Share

n 8 June 2020, 14 climate justice NGOs led by Just Share wrote to asset managers with shares in Standard Bank Group Limited (Standard Bank), calling on them to vote against the election of five climate-conflicted directors at the bank’s AGM on 26 June. Seven of Standard Bank’s 18 board members have close ties to…