Activists Getting More Active: 13D Filings Volume Doubled Since 2012
Activists are getting increasingly activist, according to an Activistmonitor report. Data compiled by this platform, which comprises “predictive intelligence and behavioral data on shareholder activism,” showed that the top 20 shareholder activists* in North America have been increasing their share of new campaigns – and will apparently continue to do so. Interestingly, the number of Schedule 13D filings issued by these top 20 activists (in companies with market caps above $100 million) has been increasing steadily since 2012.
The firm’s research has shown that, over the first quarter of 2016, companies’ boards tended to engage earlier and take these first tier activists more seriously, at the expense of second tier activists. In fact, since 2011, roughly 45 percent of U.S. campaigns targeting companies with over $100 million in market cap were carried out by the top 20 activists, the note stated.
Furthermore, larger cap companies are more likely to attract one of these activists. In companies with market caps above $300 million, these tier 1 activists undertook 52 percent of all campaigns over the same period. On the other hand, only 17 percent of all activist campaigns targeting smaller companies market caps below $300 million) were carried out by these funds.
*The top 20 shareholder activists in North America (for the 2011-2016 period), as per Activistmonitor, are: Starboard Value, Carl Icahn, Elliott Management, JANA Partners, ValueAct Capital Management, Relational Investors, Third Point, Corvex Management, Engaged Capital, GAMCO Investors, Marcato Capital Management, Discovery Group, Pershing Square Capital Management, Blue Harbour Group, Sandell Asset Management, Clinton Group, FrontFour Capital Group, Land and Buildings Investment Management, Orange Capital, and Trian Fund Management.
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
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