What made shareholder activism ‘a hot strategy' again?
March 15, 2017 | By Ben Ashwell
IR Magazine
invited Activist Insight to our New York office to discuss how
politics and economics have affected trends in shareholder activism
A total of 758 companies received public demands from
activist investors last year – a 13 percent increase on the number of
targeted companies in 2015, according to The Activist Investing Annual
Review.
In the review, Josh Black, editor-in-chief of Activist Insight,
notes that 'for activists, 2016 was a disjointed year, with mixed
fortunes either side of the summer'.
In this video, we explore why activists' fortunes changed in 2016,
both from a political and economic perspective.
On the result of the US election, Black says: ‘In many cases it turned
flat years into double-digit years, halved losses and made activism a
hot strategy again… There’s a lot of optimism that tax reform,
repatriation of overseas capital [and] deregulation can help spur some
of the industries that activists have been piling into recently to new
and greater heights.’
Black also talks about how the drop in the price of sterling after the
Brexit referendum made UK stocks attractive to US investors and
whether there is still value to be found in the public markets.
Watch the video below and look out for next week’s video, where Black
discusses activism trends around the world.
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