Activist pitch for an interview?
Practicing writing a stock pitch and have seen l/s, credit + equity and special situations pitches but never a activist pitch. Is this because they are more nuanced? Has anyone ever pitched an activist angle?
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Do you mean like "we should do something about this" or activist involvement from another fund being a catalyst
The "we should do something about this" + evaluation of the potentials i.e. issuing a dividend vs asset sale vs spinoff etc.
You can google dozens of public 100-slide presentations that the funds file when they launch their activist campaign. Hell, if it's hostile, they will even set up websites like www.fixcompanyXYZ.com and such.
Have seen those but I'm curious in an interview setting / general pitch i.e. how people write l/s pitches and if that can be applied to create an activist pitch for a company etc.
I have a buddy who got a job at an activist fund, so this is second hand. His case study / pitch during the interview process focused on determining if a company was a good activist target. This involved not only identifying reasons for underperformance, but also why there was a compelling case an activist could fix it vs being a passive shareholder and letting mgmt worry about it. I think this is the crux of making a good activist pitch vs a bad one. The majority of the time management are very smart people who are aware of their problems. Other things they cared about was a detailed share count reconciliation / right trading volume to build a position, and softer things like whether an activist or active type of shareholder was already involved in the company which could create an additional roadblock
Really helpful, what is "share count reconciliation" and "right trading volume"? Also, in terms of activist intervention vs being a passive shareholder, how did he go about making that argument? Was it just focused on management not executing in the past, stagnant board, and making value destructive decisions?
Take a look at CLCT. Alta Fox recently took an activist minority position against their BoD, arguing the members were ineffective and failed to perform duties.
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