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yj2640 · 2024年07月02日

activism invest horizon

NO.PZ2023010903000044

问题如下:

The Cherry Street Foundation is a nonprofit institution who has experienced a significant increase in donations over the last several years. Consequently, Ellie Blumenstock, CFA, Cherry Street's founder, recently concluded that the time had come to hire a professional chief investment officer(CIO) to manage this large pool of assets. Today, Blumenstock is interviewing A.J. Gelormini,a portfolio manager with over two decades of experience, for the CIO role.

Before concluding the interview, Blumenstock mentions that she recently read several articles regarding shareholder engagement and activist investing strategies. She was particularly intrigued by the role of activists in advocating for the implementation of ESG standards at large companies. Blumenstock asks Gelormini if it would make sense for Cherry Street to participate in shareholder engagement activities or to commit to a firm that engages in activist investing, and, if so, what approach would make the most sense. Gelormini’s response included the following statements.

Statement 4: Plenty of activist managers focusing on ESG issues exist, and investing with one could make sense for Cherry Street. Managers of these strategies utilize the same tactics as more traditional activist investors because they both typically have shorter time horizons and take stakes in target companies greater than 10% of the target’s outstanding equity. Some of these tactics include proposing significant changes in corporate governance, seeking board representation and engaging in proxy contests.

Gelormini's comments about activists in Statement 4 are most likely incorrect because:

选项:

A.

activist investors typically have a longer time horizon

B.

ESG-focused activists use different processes and tactics than traditional activists

C.

activist investors typically take a stake of less than 10%

解释:

Activists typically aim to achieve their goals with smaller stakes in their target companies, usually with a less than 10% stake in the target's equity.

老师您好,请问为什么activism是短期投资?一般来说都是这样吗?

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笛子_品职助教 · 2024年07月03日

嗨,努力学习的PZer你好:


老师您好,请问为什么activism是短期投资?一般来说都是这样吗?

activism策略是指买入公司本身经营尚可,但由于公司治理不佳,导致股价偏低的公司。

买入后,通过投票等手段,向公司管理层施压,要求管理层提升公司治理。

管理层公司治理提升后,压制股价的因素消除,股价回到正常水准。于是卖出股票。

由此看出:activism是一种套利行为,赚取从“公司治理不佳”到“公司治理变好”,这一段的利润。

套利行为一般是短期行为,而且持股量不能太大,否则会出现流动性的问题。一般来说都是这样的。

同学可以借助这道题,来记忆这个结论:Activists typically aim to achieve their goals with smaller stakes in their target companies, usually with a less than 10% stake in the target's equity.

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