this post was submitted on 17 Jul 2023
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Activist Investing

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This community is intended to discuss Activist Investors and Activist Investor Groups - terms used to describe individuals or groups who use sufficient ownership to lobby public companies to make changes which a board might otherwise resist. This could be in order to improve working conditions, keep jobs domestic rather than exporting overseas, or encourage more environmentally sustainable choices when operating the business.

Activist investor campaigns can also simply focus on maximizing shareholder value, and can be organized by parties who feel the current board is not meeting the fiduciary obligation to shareholders and wants to influence their decisions and practices. Even hedge funds which specialize in the application of public pressure through media partners can be considered activist investors.

Typically, a threshold of 5% ownership of a company must be reached by an individual or a group before they are recognized. This is because 5% is the ownership level which requires public filing through the SEC using a 13D disclosure - and that public filing will require a public response to demands from the incumbent board of directors.

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3 Platform Items I would like to see from a GameStop Activist Investor Group (lemmy.whynotdrs.org)
submitted 1 year ago* (last edited 1 year ago) by [email protected] to c/[email protected]
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  1. GME should work with Computershare so they (CS) can serve as a custodian for IRA’s. Ally and Mainstar have both walked back their support for DRSing IRAs. Computershare acting as a custodian as part of their contract with GameStop should allow for a cleaner solution.

  2. Revise the contract w/ Computershare w/ respect to their DirectStock plan, and provide more transparency to investors about both the ownership hierarchy of shares in the plan and the degree to which DirectStock shares are utilized for 'operational efficiency' - often 10 to 20%

  3. Issue a bulk of shares available for direct purchase by investors, similar to Home Depot's Depot Direct. This would allow for GameStop to sell shares directly to investors, and would allow purchases to be "Pure DRS" without further steps or actions.

Edit - Adding in 4, 5, and 6 from my comments on this post.

  1. request that GameStop insiders (or at least board members) must hold their shares in Pure DRS, especially for vested shares that cannot be sold for a while.

  2. GameStop should consider becoming their own transfer agent when their contract with Computershare is up for renewal.

  3. Introduce pro reward incentives, like additional percentage off, for verified stockholders on their ledger.

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[–] [email protected] 5 points 1 year ago (1 children)

ChatGPT...

Here's what it has to say from "How do you form an Activist Investor Group?"

Forming an activist investor group involves a strategic and organized approach. Here are general steps to consider when forming an activist investor group:

  1. Define Objectives:

    • Clearly articulate the objectives and mission of the activist investor group.
    • Identify the specific goals, such as influencing corporate governance, advocating for changes in company strategy, or maximizing shareholder value.

  2. Identify Like-minded Investors:

    • Research and identify potential investors who share similar goals and interests.
    • Seek out individuals or institutional investors who are willing to actively participate in the group's activities.

  3. Build a Network:

    • Reach out to potential members through personal connections, industry events, online forums, or investor networks.
    • Cultivate relationships and engage in discussions to gauge their level of interest and commitment.

  4. Establish Legal Structure:

    • Determine the legal structure of the activist investor group, such as a partnership, limited liability company (LLC), or other appropriate entity.
    • Seek legal counsel to ensure compliance with relevant regulations and to draft necessary documentation, such as operating agreements or partnership agreements.

  5. Define Roles and Responsibilities:

    • Assign roles and responsibilities within the activist investor group.
    • Determine leadership positions, committee assignments, or specific tasks based on members' expertise and interests.

  6. Develop a Strategy:

    • Create a comprehensive strategy that aligns with the group's objectives.
    • Identify target companies, analyze their financials and governance practices, and assess potential areas for improvement or change.

  7. Conduct Research and Due Diligence:

    • Perform in-depth research on the target companies, including their financial performance, market position, corporate structure, and existing shareholder base.
    • Assess potential risks, legal considerations, and regulatory requirements associated with engaging as an activist investor.

  8. Engage with Target Companies:

    • Develop a plan for engaging with the target company's management, board of directors, and fellow shareholders.
    • Consider various methods of engagement, such as direct communication, proxy voting, shareholder resolutions, or public campaigns.

  9. Leverage Resources:

    • Pool resources within the activist investor group to maximize impact.
    • Utilize the expertise, networks, and financial resources of group members to support the group's initiatives effectively.

  10. Execute and Monitor:

    • Implement the activist investor group's strategies and initiatives.
    • Monitor progress, track results, and adapt the approach as necessary.

Note that forming an activist investor group involves legal, financial, and regulatory considerations. It's crucial to consult with legal and financial professionals to ensure compliance with applicable laws and regulations and to mitigate any potential risks.

(note by me: this last sentence is interesting and, to me, I think is legitimate in many ways, though does come across as maybe something that would be said by a sort of Wall Street lackey)

More resources:

.. just came across this and thought it is a good, quick article and (maybe) whole website. https://theactivistinvestor.com/The_Activist_Investor/Blog/Entries/2015/7/21_13D_Groups.html

few other potential resources:

I clicked "Regenerate response" on ChatGPT and got more with a couple duplicates.

It also said,

"It's important to note that each activist campaign is unique, and outcomes can vary depending on the specific circumstances, company dynamics, and market conditions. Successful "wins" by activist investor groups are often the result of thorough research, strategic engagement, building alliances, and effectively articulating the case for change to other shareholders and stakeholders."

[–] [email protected] 5 points 1 year ago

at this rate it's hard to trust just about any websites about this.. about guaranteed one or all of those are corrupted somehow

"The American Council of Doctors for Smoking" type of thing comes to mind.