Our Definition of an ‘Activist’ is an agent of change, either coming from outside the company or from within it.
Broad Definition of Traditional Perception Irrelevant where change Originates.
Invest in companies where:
SUMMARY: We get Returns, Activists do the Hard Work
“What you really want to do in investments is figure out what is important and knowable. If it’s unimportant or unknowable, you forget about it.”
Warren Buffett, University of Florida, Talk to MBA Students, YouTube 1998
“I went in search of cheap stocks and had the misfortune to find them.”
Appears Cheap on Financial Statements, BUT:
Buy Awful Businesses
Pay Too Much, Even If Great Business
Have Patience – No Need to Rush In for Great Long-Term Returns
A recent study discovered:
Target companies’ valuations, including return on assets and operating performance, improved in the five-year period following an activist engagement.
Associate Portfolio Manager