The Deal by S&P Global

The Activist Investing Today podcast talked to Jim Chadwick, about Ancora’s activist strategy and his recent insurgencies at Hill International and Element Fleet Management. In a wide-ranging interview, Chadwick explains how working with Relational Investors Ralph Whitworth and David Batchelder, prior to joining Ancora, was "the most important factor" in his career of activism. Chadwick provides a bit of the backstory behind how Whitworth and Batchelder became pioneers in the activism strategy. "Today it has become so common, really ubiquitous throughout global markets. Back at the time 1999, when there were the Carl Icahn's of the world, but Relational may have been structured as the first pure-play activism fund," Chadwick said. "I was always fascinated with the way Ralph had conducted himself in the boardroom."

The Activist Investing Today podcast talked to Michelle Applebaum, a former steel analyst who has been nominated by insurgent managers Barington Capital and Land & Buildings for corporate boards, about why she thinks activists' analytics are quite sound. She also explains why activist investors often represent a consensus view of institutional investors, long before management has figured it out.

Activist Dan Loeb thinks Campbell Soup Co. should be sold and wants a full revamp over the board. The Deal's Senior Editor Ron Orol gave us the up-to-the-minute scoop.

Marathon Partners' manager Mario Cibelli explains why e.l.f.’s ‘fast beauty’ strategy can get its cosmetics into market faster than “legacy” rivals. While he foresees a bright future for the company, he has real concerns about executive compensation. Cibelli, 50, who succeeded in installing two dissidents onto the board of Shutterfly in 2015, also suggested that e.l.f. needs to bring on a designated lead independent director that isn’t affiliated with buyout shop TPG.

The insurgent investor Nelson Obus explains how listening in on his dad’s basement meetings put him on the road to investing, then later, Lazard banking and finally activism. In a wide-ranging conversation, Obus, 71, explains what kind of companies he finds attractive and why this year his 25-year-old fund opposed another activist investor’s director battle. He also gave us an inside look at how he shook up the board of Omega Protein, an “entrenched” company that was diversifying in all the wrong ways until Wynnefield showed up.

James Mitarotonda, who has run activist fund Barington Capital since 2000, says he takes a private-equity approach to public market investments in companies that frequently have high barriers to entry. However, Mitarotonda acknowledges that he will launch a director-election fight if necessary. For example, Barington is seeking to install two directors onto the board of Xerium Technologies as part of an effort to drive the paper machine manufacturer to explore a "strategic transaction that would facilitate the refinancing of its debt to more favorable terms." Beyond, Xerium, Mitarotonda spoke to The Deal about his efforts at Bloomin Brands and Avon, where he has a directorship.

Sloane & Co.'s Dan Zacchei, who advises both targeted companies and investors involved in activist situations, suggests that an insurgent fund manager’s track record is a key factor corporations must consider before deciding how to respond. According to Zacchei, a company that has underperformed for an extended period of time needs to be realistic about its prospects, particularly when faced with a well-respected activist. Alternatively, he argues that first-time activists with tiny funds can’t “come out of nowhere and all of a sudden think they are Carl Icahn.” The Deal spoke with Zacchei about governance, strategy and why “just vote no” campaigns should be treated seriously.

Kai Liekefett recently joined Sidley Austin to become the law firm behemoth’s dedicated partner in charge of proxy fights and activism. He explains why many corporations have bylaws in place that just don’t prepare them for when an insurgent investor strikes.

Since 2013, the insurgent investor Arnaud Ajdler with a “fix it or sell it” investment philosophy has put 20 directors onto corporate boards. He took some time to speak with The Deal’s activist podcast about key targets for share-price improvement: M&A, capital allocation and C-Suite payments. Ajdler also explains why he thinks Procter & Gamble’s decision to fight Peltz was “silly.”

The Activist Investing Today podcast speaks to Gregory Shill, a University of Iowa associate professor of law, about the “glass cliff” and why we’re seeing a rash of female C-Suite executives targeted by insurgent fund managers. We also take a closer look at the various types of insider-controlled publicly-traded companies, including Musk’s complex and effective form of control over the electric-car company that he oversees.