Shareholder activism will only increase in the next few years. The stigma attached to shareholder activism is dissipating, while activists are becoming increasingly sophisticated at putting pressure on undervalued targets to make the corporate changes they believe will unlock hidden potential. With corporate balance sheets stronger than ever, a M&A environment on the mend, and an economic and political landscape favorable to change, we are witnessing a prolific revival of activist investing initiatives.
A new breed of activist investor. In addition to traditional activist investors, the new proxy access rules will launch another wave of shareholder activism coming from labor unions, pension funds and special interest groups. Further to this, larger institutional investors will expand capital allocations toward special purpose investment vehicles for operationally-oriented investors with compelling one-off activist investing plans.
Activist campaigns are disruptive and costly. We firmly believe the optimal course is one of constructive engagement. Hedge Fund Solutions advises institutional investors and corporate clients on how to actively engage in constructive dialogue on corporate governance and stakeholder relations while keeping costs and business disruption to a minimum. However, if these constructive efforts prove unproductive, we have the capabilities to program-manage the appropriate response strategy. If a full-blown proxy contest ensues, we have the expertise and resource reach to help navigate through the complexities and intensities of this.
Hedge Fund Solutions conducts ongoing and extensive research about activist investments. We stay adept and current by analyzing thousands of investments made by activist investors annually and follow each activist campaign closely to its conclusion. We also monitor securities regulations and governance trends on a constant basis and often write about these regularly. We offer institutional clients a portfolio of six different investment research products, share our knowledge through our blog and complementary research articles, and frequently speak at conferences on shareholder activism, corporate governance and M&A.
We literally wrote the book on activist investing. In collaboration with The Conference Board, we recently published a 400+ page comprehensive book on shareholder activism and continually update a website dedicated to activist investing resources. We have worked on activist campaigns with investment funds managing over $100 billion in assets and advised boards of directors and senior managers of public corporations with more than $30 billion in revenues. Our principals have all had direct experience managing public companies and investment funds involved with activist investing campaigns and proxy contests. These lessons of experience, combined with our developed expertise advising CEOs, boards of directors and institutional investors on shareholder activism through multiple engagements, uniquely positions Hedge Fund Solutions to provide practical solutions to clients in this particularly challenging and specialist domain.