Quality of Activists' Arguments

Les Échos, the daily French financial newspaper, extensively covers SquareWell’s Activism Survey.

The recent resignation of UK-Listed First Group’s boss came following Coast Capital’s push to remove half its board due to concerns with its strategic direction. Whilst Coast Capital’s proposals did not receive majority support, it did receive the backing of approximately 20 percent of First Group’s shareholders, including two active managers – Schroders and Columbia Threadneedle.

This recent example demonstrates the clear trend of the changing dynamic between traditional investors and activists in recent years. Almost 90% of “active” managers (as opposed to “passive” managers of index funds) believe that activists have utility in the markets, according to our survey conducted by SquareWell Partners though with reservations (with close 60% of investors participating in the survey suggesting that activists fail to consider the entirety of the business).

The full article can be accessed here (in French, subscription required).