Teneo News: Sir Martin Donnelly Joins Teneo as a Senior Advisor

Proportion of S&P 500 companies that have faced activist scrutiny from 2009 to 2015.


Activism is the New Normal

Rather than the exception, activism has proliferated the investment universe and has become an accepted ‘asset class.’ Most activist funds are structured to deliver quarterly returns to their investors or face redemptions. In an attempt to quickly deliver returns to their investors, activist funds employ a variety of tactics in order to push through their agendas to quickly enact change that will positively impact their investments. Although there may be short-term gain for investors, and a momentary hike in an organization’s stock price, many such tactics may actually harm a company’s long term prospects.

Teneo now has one of the largest shareholder activist defense practices in the industry and we have advised on many of the most recent high-profile situations. Our firm has made the decision to only work on the side of corporations; we do not represent activist investors. We focus on helping clients: prepare for potential activist attacks; engage with activist investors, long-term shareholders and proxy advisors; and, if necessary, respond to and navigate an adversarial campaign.

Teneo Insights

John Judge

Chief Client Strategist, Teneo Holdings

Shareholder Activism: Declining or Morphing?

After several years of unprecedented growth, both in the number of players and in assets under management, activists appear to be heading towards yet another down cycle. A number of factors are contributing to this, including some high-profile failures, an overall decline in performance, and most importantly, the beginnings of a fundamental shift in the relationship between corporations and their shareholders. However, to say that activism is going away any time soon would be naive....

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