Why 2018 Was Record Year for Shareholder Activism

The video discusses the evolving landscape of activist campaigns, highlighting the influence of M&A activities and the changing nature of activists, including the rise of new hedge funds and private equity involvement. It explores the impact of activism on asset management and corporate strategies, with a focus on trends in Europe and the implications of dual class shares on shareholder power.

What was a significant driver of the record level of campaign activity last year?

• New government regulations

• Increased social media presence

• Technological advancements

• M&A volume in the market

How has the nature of activists changed recently?

• They are focusing more on environmental issues

• There is a rise in new activist hedge funds

• They are becoming less involved in corporate governance

• They are primarily targeting small companies

Why is activism not considered an asset class?

• It is only applicable in certain industries

• Any shareholder can engage in activism

• It is limited to hedge funds

• It requires a large amount of capital

What is a potential challenge for companies due to the blurring of lines in shareholder ownership?

• Higher costs of production

• Increased competition from startups

• Difficulty in maintaining brand loyalty

• Need for better preparation by company boards

What trend is observed in European activism?

• A focus on small cap corporations

• A shift towards environmental activism

• A decrease in activist campaigns

• A quieter approach by companies

What is a limitation of dual-class shares in activism?

• They prevent any form of shareholder engagement

• They guarantee a company's success

• They are only applicable in the tech industry

• They do not help if the stock is undervalued

What has been a focus of large cap corporations in Europe?

• Pursuing de-conglomeration

• Increasing employee benefits

• Investing in renewable energy

• Expanding into new markets