D.E. Shaw Said to Build Activist Stake in Lowe's

The transcript discusses Disha's unexpected role as an activist investor in Lowe's, a company traditionally seen as a second to Home Depot. Disha, having hired a strategist from Elliott Management, is making its first significant activist move. Despite Lowe's strong market performance, there is a perceived gap between it and Home Depot that activists might exploit. The discussion also covers potential actions activists could take and the dynamics of Lowe's major shareholders, including passive funds that might support activist campaigns.

What is notable about Disha's involvement in Lowe's?

• Disha is the largest shareholder in Lowe's.

• Disha has a long history with Lowe's.

• Disha is not typically associated with activism.

• Disha is a well-known activist investor.

Why might Disha be interested in Lowe's despite its strong stock performance?

• Lowe's is a new company in the market.

• Lowe's is facing financial difficulties.

• Lowe's has a significant spread compared to Home Depot.

• Lowe's is planning to merge with Home Depot.

What is one potential action that activists might consider for Lowe's?

• Changing the company's name.

• Increasing the number of stores.

• Selling off or spinning some assets.

• Merging with a competitor.

Who are the top shareholders of Lowe's?

• Lowe's employees and management

• Vanguard and Black Rock

• Elliott Management and Disha

• Home Depot and State Street

How do passive funds typically engage with activist campaigns?

• They remain completely uninvolved.

• They oppose all activist efforts.

• They actively lead the campaigns.

• They often support activists behind the scenes.