Increasingly, the days of passive board directors have passed. What makes some directors and activist investors effective, while others crash and burn?
Today both private and institutional investors influence company strategy by virtue of their significant investment stake. What makes some directors and activist investors effective and others crash and burn requires another level of strategy.
November's discussion, acknowledges in part our ongoing fascination with JCPenney and wishes we had insider knowledge of the board discussions. Reports surrounding Bill Ackman's actions, the activist shareholder who bailed and in the process took a significant loss, made us wonder if it was worth it? And more importantly who, if anyone, benefitted?
Correspondingly, we have teed up a couple of different takes on activist investors/directors' strategy, the responses by corporate leadership, and the ultimate impact on company valuations, e.g. shareholder returns.
Remember we are off in December, but we have set up an end of year drinks evening to carry on the conversation informally...Mark Thursday Nov 21 on your calendar, location TBD.
As J.C. Penney Flounders, a Lack of Control Becomes Evident
Debunking the myths of activist investors
Private Equity: Too disruptive or not disruptive enough?http://aswathdamodaran.blogspot.com/2012/10/private-equity-villain-or-victim.html
Optional—the referenced Deck: Investing for Grownups: Value Investing