Sanmi Adegoke’s Post

Activist investing isn't just reserved for global investors like Carl Icahn or Bill Ackman anymore — Australia is witnessing its own surge in activist-style activity. Investors are influencing companies to block deals, shuffle boardrooms, cut costs, and beef up dividends. The conversations that used to happen behind closed doors are now coming public. From Aussie billionaires like Atlassian's Mike Cannon-Brookes and Gina Rinehart to heavyweight pension funds such as AustralianSuper, and specialized funds like L1 Capital's Catalyst Fund, stakeholders are leveraging their influence to drive change. We recently sat down with James Hawkins, a partner and head of L1 Capital's Catalyst Fund, who said “Activism in Australia has evolved from having a stigma associated with it, to being accepted, and to now being valued.” His A$1.7 billion fund has gained 42% since its inception in 2021. We'll be closely watching to see how boards prepare for activism and which companies make their way into the spotlight next!

"If the problem is that diverse fund managers are riskier, for whatever reason, then the FoF model should give an added layer of protection should everything go astray." One of many reasons why I decided I want to launch a FoF instead of a VC fund. Thank you Dominic-Madori Davis for writing this piece!

While fostering innovative strategies, effective management oversight, and being integral to the “S” in ESG, diverse boards face challenges that activist hedge funds are leveraging to influence companies. Activist hedge funds have been leveraging the speed and unity challenges that diverse boards face “to force the boards and management of companies to implement organizational changes, such as splitting up companies or changing their strategy.” 𝐒𝐩𝐞𝐞𝐝- Activist hedge funds compete with companies to gain other shareholders’ support. By slowing down boards, board diversity gives activist hedge funds a head start in mobilizing other shareholders. 𝐁𝐨𝐚𝐫𝐝 𝐮𝐧𝐢𝐭𝐲- Activist hedge funds benefit from alliances with some board members. By hampering board unity, board diversity increases the likelihood that activist hedge funds can win over some board members. The impact is striking: Companies with diverse boards become prime targets, potentially stalling the progress of diversity mainstreaming. Consider this – the study reveals that 𝐟𝐢𝐫𝐦𝐬 𝐰𝐢𝐭𝐡 𝐠𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 𝐢𝐬𝐬𝐮𝐞𝐬 𝐚𝐫𝐞 𝐨𝐯𝐞𝐫 𝟑𝐱 𝐦𝐨𝐫𝐞 𝐥𝐢𝐤𝐞𝐥𝐲 𝐭𝐨 𝐛𝐞 𝐭𝐚𝐫𝐠𝐞𝐭𝐞𝐝 𝐛𝐲 𝐚𝐜𝐭𝐢𝐯𝐢𝐬𝐭 𝐡𝐞𝐝𝐠𝐞 𝐟𝐮𝐧𝐝𝐬 𝐰𝐡𝐞𝐧 𝐛𝐨𝐚𝐫𝐝 𝐝𝐢𝐯𝐞𝐫𝐬𝐢𝐭𝐲 𝐢𝐬 𝐡𝐢𝐠𝐡. So, where does this lead us? Both asset owners and policymakers must rethink their relationship with activist hedge funds. 𝐅𝐨𝐫 𝐚𝐬𝐬𝐞𝐭 𝐨𝐰𝐧𝐞𝐫𝐬, the implications are profound. Your investment choices echo your values. If you value diversity, then you need to rethink where you invest your money and how you vote in proxy fights. 𝐅𝐨𝐫 𝐩𝐨𝐥𝐢𝐜𝐲𝐦𝐚𝐤𝐞𝐫𝐬- Granting boards more response time when facing activist hedge funds can foster diversity without compromising progress. The Netherlands has already adopted such an approach by allowing boards to initiate a “cooling off period” of up to 250 days in confrontations with activist shareholders. In a world where corporate strategies and societal aspirations converge, embracing change and balance empowers board diversity and sparks a dialogue that goes beyond the bottom line. Read more- https://lnkd.in/gZP9khmA #boarddiversity #esg #esgstrategy #investing #esginvesting #corporategovernance  

Unlocking Value: Activist Investor Boosts Rentokil Stock #activistinvestor #activistinvestorstrategy #capitalallocation #NelsonPeltz #operationalefficiency #RentokilInitial #Rentokilstockperformance #shareholdervalue #strategicreview #TrianFundManagement

🧠 Learn the new #WordOfTheDay! Evergreen fund - a type of venture fund with an unspecified life span that continuously reinvests profits in new investments. 📚Become a money maven by joining our club; full #WOD glossary and so much more included- https://lnkd.in/egJWvQuh 👉 And if joining feels like we’re moving too fast, how about showing the love with 👍 and maybe a repost? Thanks & good karma :) #GreatWealthTransfer  #FinancialFreedom

Times are a chaingin’ … 39% of assets are now in passive funds making active fund managers work harder to earn their keep.  “Activism” as an investment strategy has outperformed all other hedge fund approaches, putting boards and directors on notice. It’s time to actively challenge the collective thought process and stop just “going through the motions”. Directors will be required to defend business activities and strategic direction. Deep thinking and innovation is going to be necessary to meet the demand for high performance. #activism #fundsmanagement #boardroom #boardperformance #generativegovernance #investmentstrategy

Diverse boards bring with them a host of benefits—from supercharged innovation capacity to increased resilience—and are a key factor for boosting the S in ESG. Unfortunately, the important discussions these boards conduct can sometimes lead to longer decision-making times, a "weakness" that that some activist hedge funds have begun to exploit. New research from Mark DesJardine of Dartmouth College, Wei Shi of University of Miami, and CSP Collaborator Emilio Marti of Erasmus University Rotterdam finds that activist hedge fund managers are aware of these factors and consider them when selecting which companies to target. "If a board is made up of a bunch of diverse individuals that we think... will make decisions more slowly," one of their interviewees said, "that’s going to tip things in our favor.” In this article on our Medium Publication 'Charting the Impact Course', the co-authors reflect on the implications of this behavior, and what investors and policymakers can do about it: https://lnkd.in/eAfWpSPk #ESG #Diversity #DEI #Inclusion #ShareholderActivism #ActiveOwnership

💰Alternative asset classes are set to see the biggest increase in fund raising in 2024 according to a survey carried out by Carne Group. Fund managers expect #PrivateEquity, #RenewableEnergy, #HedgeFunds, #PrivateDebt & #RealEstate to see the biggest increase in fund raising. 💬'The appetite for alternative assets classes amongst investors is increasingly rapidly, fuelled by a growing desire from investors to diversify their portfolios and to manage volatility.' John Donohoe, CEO at Carne Group

New research from Mark DesJardine of Dartmouth College, Wei Shi of University of Miami, and CSP Collaborator Emilio Marti of Erasmus University Rotterdam finds that activist hedge fund managers are aware of these factors and consider them when selecting which companies to target. "If a board is made up of a bunch of diverse individuals that we think... will make decisions more slowly," one of their interviewees said, "that’s going to tip things in our favor.” In this article, the authors reflect on the implications of this behavior, and what investors and policymakers can do about it: https://lnkd.in/eAfWpSPk #ESG #Diversity #DEI #Inclusion #ShareholderActivism #ActiveOwnership

It's a challenging time for Entain. The aftermath of previous management decisions and leadership uncertainty are contributing to the downward pressure on the share price. As interim CEO Stella David is left to pick the pieces to stabilize the company's position, how long will it be before activist hedge funds add another layer of complexity to this corporate saga? Despite the challenges, Entain's strong brand portfolio and expanding customer base provide potential for growth and cause for some optimism. #Entain #Leadership #BusinessChallenges #StellaDavid #ActivistInvestors #hedgefunds Entain Australia & New Zealand Entain Venues Sachem Head Capital Management LP Dendur Capital LP Ricky Sandler Eminence Capital