4/29/2029

Shareholder Activism in Asia Drives Global Total to Record High

Nikkei Asia (04/29/29) Shikata, Masayuki

Activist shareholders had their busiest year on record in 2024, with the Asia-Pacific region making up a fifth of campaigns worldwide, pushing some companies higher in the stock market and spurring others to consider going private. The worldwide tally of activist campaigns rose by six to 258, up by half from three years earlier, according to data from financial advisory Lazard. Campaigns in the Asia-Pacific tripled over that period to 57, growing about 30% on the year. Japan accounted for more than 60% of the regional total with 37, an all-time high. Activity is picking up this year as well in the run-up to general shareholders meetings in June. South Korea saw 14 campaigns, a jump of 10 from 2023. Critics say South Korean conglomerates are often controlled by minority investors that care too little about other shareholders. Australia and Hong Kong saw increases of one activist campaign each. North America made up half the global total, down from 60% in 2022 and 85% in 2014. Europe had 62 campaigns last year. The upswing in Japan has been fueled by the push for corporate governance reform since 2013 and the Tokyo Stock Exchange's 2023 call for companies to be more mindful of their share prices. The bourse has encouraged corporations to focus less on share buybacks and dividends than on steps for long-term growth, such as capital spending and the sale of unprofitable businesses. Demands for capital allocation to improve return on investment accounted for 51% of activist activity in Japan last year, significantly higher than the five-year average of 32%. U.S.-based Dalton Investments called on Japanese snack maker Ezaki Glico (2206) to amend its articles of incorporation to allow shareholder returns to be decided by investors as well, not just the board of directors. Though the proposal was rejected, it won more than 40% support, and Glico itself put forward a similar measure that was approved at the following general shareholders meeting in March. U.K.-based Palliser Capital took a stake last year in developer Tokyo Tatemono (8804) and argued that more efficient use of its capital, such as selling a cross-held stake in peer Hulic, would boost corporate value. Activist investors are increasingly seeking to lock in unrealized gains from rising land prices, reaping quick profits from property sales that can go toward dividends. Companies in the Tokyo Stock Exchange's broad Topix index had 25.88 trillion yen ($181 billion at current rates) in unrealized gains on property holdings at the end of March 2024, up about 20% from four years earlier. After buying into Mitsui Fudosan (8801) in 2024, U.S.-based Elliott Investment Management this year took a stake in Sumitomo Realty & Development (8830) and is expected to push for the developer to sell real estate holdings. This month, Dalton sent a letter to Fuji Media Holdings (4676), parent of Fuji Television, calling for it to spin off its real estate business and replace its board of directors. Activist campaigns have sparked share price rallies at some companies. Shares of elevator maker Fujitec (6406) were up roughly 80% from March 2023, when it dismissed Takakazu Uchiyama -- a member of the founding family -- as chairman under pressure from Oasis Management. The rise in demands from activists "creates a sense of tension among management, including at companies that don't receive such proposals," said Masatoshi Kikuchi, chief equity strategist at Mizuho Securities. Previously tight cross-shareholdings are being unwound, and reasonable proposals from minority investors are more likely to garner support from foreign shareholders. Some companies are going private to shield themselves from perceived pressure. Investments by buyout funds targeting mature companies in the Asia-Pacific were the highest in three years in 2024, according to Deloitte Touche Tohmatsu. Toyota Industries (6201) is considering going this route after facing pressure from investment funds last year to take steps such as dissolving a parent-child listing with a subsidiary and buying back more shares. Toyota Industries holds a 9% stake in Toyota Motor (7203). The automaker "may have proposed having [Toyota Industries] go private as a precautionary measure," said a source at an investment bank.

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1/16/2027

Dealmakers See More Retail Mergers and IPOs in 2026 After Tariffs Sidelined M&A Last Year

Reuters (01/16/27) Summerville, Abigail

Dealmakers predict an uptick in mergers and IPOs for retailers and consumer goods companies this year after punishing tariffs on imports to the United States had sidelined activity in the industry for the first half of 2025. Several national restaurant and convenience store chains are primed for IPOs, along with organic baby food company Once Upon a Farm, Hellman & Friedman-backed auto repair company Caliber Holdings, and Bob’s Discount Furniture, which is owned by Bain Capital, according to more than two dozen CEOs, M&A advisors and private equity investors who attended the ICR Conference in Orlando, Florida this week. “The number of high-quality companies that are in queue to go public in 2026 is higher than we’ve seen since 2021,” Ben Frost, Goldman Sachs' (GS) global co-head of the consumer retail group said in an interview. “The question is does that mean more will go public? If it does, private investors will see the ability to exit investments again (in a) regular way, which will help (private equity) activity.” Frost was one of the more than 3,000 attendees at the annual gathering, where executives from Walmart (WMT.O), Shake Shack (SHAK.N), and Jersey Mike’s were among presenters while bankers, lawyers and private equity investors spent much of their time brokering deals and landing clients behind the scenes. The upbeat mood was a marked shift from last spring after U.S. President Donald Trump's "Liberation Day" tariff announcements sent markets skidding and killed or stalled several consumer and retail deals. The second half of the year saw a resurgence in activity that brought with it several mega deals, including Kimberly-Clark’s (KMB.O) nearly $50 billion deal to buy Kenvue (KVUE.N), announced in November. "(Companies) are still really focused on growth and synergies. They’re looking at bigger deals than they’ve been willing to do for the last number of years. The back half of last year was the start of that,” Frost said. Kraft Heinz (KHC.O) announced in September it would split into two companies to unwind its 2015 merger, shortly after Keurig Dr Pepper (KDP.O) had agreed to buy JDE Peet’s for $18 billion with plans to split the coffee and non-coffee beverages into separate companies. In apparel, Gildan Activewear (GIL) bought Hanesbrands for $2.2 billion. Investors could also spur more deals and corporate breakups in the sectors, Audra Cohen, co-head of the consumer and retail group at law firm Sullivan & Cromwell, said in an interview at the conference. Corporate agitators have taken recent stakes in Lululemon Athletica (LULU.O) and Target (TGT.N), but aren't yet pushing for M&A. Lululemon hosted a morning yoga class and its management team met with analysts and investors at the conference. Meanwhile, private equity buyers are beating out companies for some deals, Manna Tree Partners co-founder Ellie Rubenstein told Reuters. Her firm sold its cottage cheese brand Good Culture to a larger consumer-focused firm L Catterton just last week. “A lot of these brands have gotten lost (inside big corporations) and the consumers don’t like it. You may see a lot of corporate carveouts this year,” Rubenstein told Reuters in an interview after her keynote address. She interviewed her billionaire father and Carlyle co-founder David Rubenstein, 76, on stage at the conference. The father-daughter pair contrasted their portfolios, pointing to Carlyle’s history of investing in fast food chains like McDonald's (MCD.N) and KFC Korea while Manna Tree saw big returns from investments in healthier food brands like pasture-raised egg producer Vital Farms (VITL.O) and Good Culture.

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5/28/2026

TCI (Cellnex) and Third Point (Indra) Make Spain World’s 7th Largest Market for “Activist Funds,” With Positions Worth $3.97 Billion

The Corner (05/28/26)

Spain ranks as the seventh largest market in the world – in terms of the market value of positions held by activist investors – according to the ‘Sodali 40’ report, which estimates the aggregate value of these investments in Spanish companies at $3,970.7 million at the end of the first quarter. This means that, within the European context, Spain is the fourth market with the highest level of activist penetration, behind only France, the United Kingdom and the Netherlands. The value of activist positions in Spain shows a year-on-year growth of 8.8% (comparing March 2025 with March 2026), although on a quarterly basis, it remained relatively stable with a slight increase of 0.9% compared to December 2025. The report specifically mentions the activities of Third Point, the U.S. fund that holds a stake in Indra (BME: IDR) and actively supports the creation of a ‘Spanish defense rollup.’ Although the fund led by Dan Loeb claims to hold less than 3% of the capital – which means it is not required to disclose details of its stake – it has threatened a fall in the share price if Indra does not proceed with its merger with EM&E, the company owned by the Escribano brothers. But the most prominent example of corporate activism in Spain is undoubtedly the position taken by the British fund TCI (The Children's Investment Fund) – led by the billionaire and investor Chris Hohn – in Cellnex Telecom (CLNX.MC) in recent years. TCI is one of Cellnex's key shareholders, the second-largest shareholder with a 9.38% stake, second only to the Benetton family through Edizione, which holds around 9.9%. TCI's role in Cellnex is a textbook case of successful shareholder activism: In early 2023, TCI burst onto the scene as the main shareholder and launched an aggressive campaign against the board of directors of the telecoms tower company. Chris Hohn harshly criticized the handling of the succession of the then CEO, Tobías Martínez, accusing the board of a “lack of progress” and of mismanaging the process. TCI demanded (and secured) radical changes in record time: The dismissal of the then non-executive chairman, Bertrand Kan. The departure of several independent directors. The appointment of Anne Bouverot as the new chair of the board. Securing a seat on the board for its representative, Jonathan Amouyal. TCI’s aim was not merely to change faces, but to force a 180-degree shift in Cellnex’s business model. Historically, Cellnex had grown very aggressively by purchasing thousands of mobile phone towers across Europe, financing this with a large amount of debt. With the rise in global interest rates, TCI pressed for a halt to the massive acquisitions and a shift to a strategy dubbed ‘The Next Chapter,’ centered on: Reducing debt: Focusing on financial discipline to achieve and maintain an investment grade credit rating from agencies such as S&P. Sale of non-strategic assets: To accelerate deleveraging, they supported the sale of Cellnex’s businesses in countries such as Ireland (for nearly €1 billion) and Austria. Shareholder returns: Changing the allocation of free cash flow (FCF). Once the balance sheet has stabilized between 2024 and 2025, the focus has shifted to share buybacks and increased dividends. Following the appointment of Marco Patuano as CEO (an executive very much in line with the demands for efficiency and capital control), the waters seem to have calmed.

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5/28/2026

Dan Loeb Says Tech Is the Most Attractive Sector Right Now — Unless You Hold This ‘Draconian’ View

MarketWatch (05/28/26) Goldstein, Steve

Dan Loeb, the hedge-fund veteran famed for boardroom fights and value investing, is leaning into the rally that has propelled tech stocks higher. Loeb, the founder and chief executive of the hedge fund Third Point, was asked on an episode of the podcast “Invest Like the Best” that was aired on Thursday for his thoughts on megacap tech companies. “I think the setup is great,” Loeb replied. He said he had considered taking profits in Nvidia (NASDAQ: NVDA), for instance, but then looked at the valuation and growth rate. “Unless you are really draconian or negative and you think that somehow the AI world is going to roll over in ’31 or ’32, I think it’s the most attractive sector right now. It’s where the bulk of our capital is invested.” Loeb’s first-quarter shareholder letter noted diversified gains in semiconductors, memory, semicap equipment, power infrastructure, aerospace and defense positions that helped the firm’s flagship fund outperform the S&P 500, albeit still falling 0.6% between January and March. Loeb also was asked about the hardest investment lesson he has been taught. “I would have to say our investment in FTX,” Loeb replied, referring to the now-bankrupt cryptocurrency brokerage, which collapsed in 2022 after customer funds were found to have been misappropriated. “It looked great. The company was growing fast. We could verify it all on the blockchain, felt like we had some good company on the cap table with us.” Loeb also noted the astute venture-capital investments that founder Sam Bankman-Fried had made in companies including Anthropic and Cursor. “One of the amazing things about our capitalist system is that venture-backed companies have this incredible ability to go out and raise capital for interesting ideas,” Loeb said. “Most people are good actors with good intentions. We've rarely had any kind of mishap.” The due-diligence process, he said, now includes checking bank balances. Loeb discussed his triumphs, as well, citing his firm’s investments in the debt of Elon Musk’s Twitter. “The Twitter debt was a resale of the financing debt that was offered when Elon bought the company. Morgan Stanley (NYSE: MS) sat on it for a while. It was deep underwater. When it got close to par, they decided to sell it,” said Loeb. “Most credit investors were really scared and nervous to buy that, even though it was like 96, 97 cents on the dollar [and] it was yielding around a 12% yield. We were comfortable enough with the underlying value of the business and with the fundamentals that we made that, at that time, our largest credit position.” Later, when Musk’s xAI financed debt, Loeb said very few credit investors wanted it because there were no cash flows. “But we were very comfortable that this was a real business. We looked at them [from the perspective of] credit investors, but we also were able to bring in the resources of our private investing knowledge.”

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5/28/2026

Figma Gets an Investor. Exhibit A on Why Companies Don’t Want to Go Public.

Barron's (05/28/26) Wolf, Nate

Figma’s (NYSE: FIG) first year as a public company hasn’t gone well. Now the design software maker has an investor to deal with. Hedge fund Findell Capital Management, which has an undisclosed stake in Figma, issued a letter Thursday to Figma’s chief executive and board, urging changes at the company. Figma needs to take steps to shed its unwarranted reputation as an artificial-intelligence “loser,” Findell argued. Figma didn’t immediately respond to a request for comment. Figma shares surged 6.2% to $22.67 on Thursday—a welcome gain for a stock down 31% from its initial public offering price of $33 a share last July. Shares have tumbled ever since spiking 250% on the company’s first day of trading. As if the price volatility and fears about AI weren’t enough, the activist campaign underlines one downside of an IPO. Public companies have to answer to any number of potential shareholders, and battles with investors can play out for the whole world to see. As far as activist campaigns go, Findell’s isn’t the worst to manage. The firm isn’t a widely feared investor giant like Elliott Management or Trian Partners, and its stake is likely small. The firm’s requests, meanwhile, don’t include extreme changes like selling the company or ousting CEO Dylan Field. Rather, Findell urged Figma to trim its product suite down to its core design, coding, and virtual whiteboard tools. The firm also called for a reduction in research and design costs and stock-based compensation. The latter equaled about 8% of revenue in the most recent quarter. The final request directly addressed potential disruption by AI design and coding tools. Anthropic product executive Mike Krieger resigned from Figma’s board on April 14, three days before Anthropic released Figma competitor Claude Design, Findell pointed out. “This pattern of events raises serious corporate governance concerns,” wrote Findell’s Brian Finn, adding that two remaining board members appear to be investors in Anthropic. “We believe the Board should conduct an independent investigation to evaluate whether Anthropic benefited from any improper use of Figma’s confidential information.” Anthropic didn’t immediately respond to Barron’s request for comment. Figma is one of a relatively low number of companies to test the public markets in the last few years. Just 90 companies went public in the United States in 2025, according to data from University of Florida professor Jay Ritter. That is down from an average of more than 400 per year throughout the 1990s. The median age of businesses going public in 2025 was 12 years, well above the historical median of 9 years. Activist challenges aren’t a major reason why start-ups stay private for longer. Academic research has pointed to a decline in business dynamism, abundant private funding, intangible-focused investing, regulatory costs, and other factors behind the downturn in IPOs. Good, old-fashioned volatility may be another explanation. But scrutiny from hedge funds certainly isn't something executives look forward to. And with private funding serving as an attractive alternative to an IPO, why deal with frustrated investors, regulators, and sell-side analysts if you don't need to? “Public companies operate under constant scrutiny: quarterly earnings pressure, extensive reporting requirements, and growing compliance costs,” Ryan Ferrell, an advisor at TritonPoint Wealth, wrote in a blog post earlier this year. “For many founders and management teams, that environment can be distracting.” Add another distraction to the list for Figma.

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5/27/2026

After Bitter Proxy Fight, Lululemon CEO Could Use War Chest to Revamp Bruised Brand

Reuters (05/27/26) Kaye, Danielle

Hard-hit Lululemon Athletica (LULU.O) has ended a months-long proxy fight with founder Chip Wilson that weighed on its shares amid weakening brand appeal. Shares in the sports apparel brand tumbled nearly 60% in the past year and roughly 9% in just the last month as the proxy war intensified, new competitors emerged and the firm grappled with a leadership transition. But the truce announced on Wednesday clears the way for incoming CEO Heidi O’Neill to focus on Lululemon's overlooked strength: a $1.8 billion net cash treasure chest that the Canadian company could use to invest in new products, revamp retail outlets and push into under-tapped markets. "Lululemon generates far more cash than it needs to cover its expansion plans," said David Swartz, a senior equity analyst at Morningstar. "The issue is, what should the investments be" Since Wilson listed Lululemon nearly two decades ago, affluent female shoppers - particularly in the core North American market - have associated the brand with its sophisticated leggings and yoga pants. But competition in the athleisure space has intensified. Upstarts including Alo Yoga and Vuori have opened U.S. stores, often near Lululemon locations. Lululemon's key challenge is luring back its loyal North American shoppers with revamped products, said Brian Nagel, a senior analyst at Oppenheimer. This first step may not require a huge capital investment: "It's almost back to the basics: introducing more basic products that encourage the legacy consumer to spend more with the brand." But the war chest may allow for investments to compete in new product categories altogether - footwear, for example. Moreover, with sales in North America accounting for roughly three-quarters of Lululemon's revenue, the brand has potential to grow in overseas markets, notably China and Europe. "You have a brand that is still very portable," Nagel said. "You need to fix the home market, but investing behind that portability makes sense." "The cash flow the company continues to generate gives them more firepower to execute a turnaround," he added. Lululemon's gross margins, though still robust at 56.6% for fiscal year 2025, have narrowed, and operating margins have shrunk to below 20% of revenue. The slowdown has given investors pause about whether the Canadian player can return to the type of growth it once enjoyed. A leadership vacuum has added to Wall Street's concerns about the athleisure giant. O'Neill will not step into her role until September, meaning any tangible changes are unlikely to take effect until next year. "No one is going to step up and commit to a large investment in the company when the new leader of the company doesn’t start until the back to school season is already done," said Randal Konik, an equity analyst at Jefferies. The delay in any fundamental change to Lululemon's product strategy "gives more time for Alo and Vuori to build more stores, to take more share," Konik added. Lululemon's first-quarter results next week will offer the latest snapshot of brand momentum. Investors remain in a wait-and-see mode. But O'Neill is poised to be greeted with a supportive financial backdrop, in contrast to other apparel companies that have endured CEO changes while facing financial distress. When new CEO Bracken Darrell arrived at Vans owner VF Corp (VFC.N) in 2023, for instance, he was confronted with more than $5 billion in net debt. A series of divestitures have reduced the company's debt load, but the financial struggles have delayed its turnaround. "I don't think Lululemon is in that situation," said Swartz, of Morningstar. "The company is in much better shape."

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5/21/2026

Is Chris Hohn Britain’s Answer to Warren Buffett?

Financial Times (05/21/26) Mourselas, Costas; Pollard, Amelia

It’s a sunny April afternoon in London and the spirit of God is moving upon Sir Chris Hohn. The UK’s most successful hedge fund manager holds an intense gaze as he quotes a Hindu mystic, bathed in light streaming in from the windows of his corner office on London’s Clifford Street. “God is not a man in the sky with a white beard,” Hohn recites softly, dressed modestly in a beige suit and white shirt. “Close your eyes, and in the darkness you can know God and God is consciousness.” Most hedge fund managers prioritize earthly matters over the business of the soul. But then most hedge fund managers are not like Hohn. Hohn, 59, is perhaps the closest thing Britain has to Warren Buffett. His Children’s Investment Fund (TCI) has become the fifth most profitable hedge fund of all time, last year bringing in more profits after fees than any other firm. Yet unlike its behemoth rivals Citadel and Millennium that employ thousands of people, his fund has done this with around half a dozen elite analysts and one all-powerful portfolio manager at the helm. Where other hedge funds of a similar size spread wagers across thousands of investments, Hohn has built his record of success on a series of colossal multibillion-dollar bets, currently managing roughly $77 billion in only 15 positions globally. His success as an investor has allowed him to turn his charitable foundation into one of the UK’s largest, giving away billions to public health, climate and children’s causes. Buffett, whom Hohn speaks to often, tells the FT his record is “exceptional." Hohn is driven by deep convictions: friends and former colleagues describe an investor of supreme self-confidence, a fierce activist unafraid to confront unruly executives, and a devoted philanthropist who personally gave away more than £1 billion last year. “Most of us see the world in shades of grey, where there are three or five things which are important to an investment thesis,” Rishi Sunak, the former UK prime minister who once worked at the fund, tells the FT. “Chris has an incredible ability to think in black and white. He focuses on one, maybe two things that drive the investment thesis and then has the confidence to scale up the bet so it’s a big part of the fund.” This iron certitude extends from finance to faith; when he is asked about the spiritual beliefs that inspire him, Hohn corrects the question’s premise. He “knows,” he says, rather than believes. Yet his convictions are increasingly being tested. A wave of advances in AI is crashing against his portfolio and challenging his biggest holdings. His fund’s largest investment, a roughly $14 billion position in jet engine manufacturer GE Aerospace (NYSE: GE), is down around 7% this year as the Iran war hits the global airline industry. The fund is down 4.3% to the end of April, the worst start of the year since 2022. In this context, sureties can begin to look like weaknesses. “A lot of the geniuses in this world are wired this way,” says one person who knows him well. “They think they see things nobody else sees. When you take a bet the right way and it’s directional, you crush it. But when things go wrong it can go terribly as well. But that is the main danger.” In a rare, in-depth series of interviews, Hohn says he is unconcerned by the fund’s performance, pointing to previous periods when key stocks in the portfolio fell in half before more than tripling in value. He wants to do the best for his investors, he says, but “we don’t control them.” If they decide to pull out, “why would I cry? Maybe I’ll do better?” It is folly to say concentrated investors are destined to fail, he says, citing his hero as an example: “The most famous concentrated investor is Warren Buffett. Anyone who knows his work knows he spoke frequently on concentrated investing. No one questions his genius.” Hohn’s investment style and commitment to charity may draw comparisons with Buffett, but the two are starkly different characters. Where the so-called Oracle of Omaha is famous for his folksy charm and cult of personality, Hohn keeps a lower profile. In person, he can be voluble one moment but prickly the next. When he feels challenged he speaks rapidly, often ending sentences with a question: yeah? Do you see that? You with me? But when he speaks of God or of charity, his pace of speaking slows and he becomes softer, gentler. Over six hours of interviews with the FT, spread across several days, he is least open about his upbringing, answering in short, clipped sentences. He was born to Jamaican parents who emigrated to the UK and was raised in Addlestone, Surrey. His childhood was “non-eventful.” His parents were “very poor,” he says, and he felt an “obligation to assist.” When asked if he looked up to any of his family members he answers “no.” “School and university was a way out.” He graduated from Southampton university with a first in economics and accounting, and subsequently studied at Harvard Business School where he met Jamie Cooper, who would become his first wife. Taking a job at hedge fund Perry Capital, Hohn harbored aspirations to make a fortune, which initially put off Cooper. But he won her over with a desire to use those anticipated funds to alleviate suffering, partly resulting from a trip to the Philippines when he saw children living in poverty, court documents say. But he had little doubt of his destiny, he says. “Bob Dylan said from a young age he knew he was going to be successful. He was operating in intuition,” says Hohn. “My intuition, which is the intelligence of the soul, said my purpose here was to help people.” On a simpler level, he loved investing, calling it “one of the purest ways to apply intellect to making money." When Hohn founded The Children’s Investment Fund in 2003, he initially hard-wired philanthropic giving to a sister foundation, to be run by Cooper, in the firm’s founding documents. (He has since broken the link and now gives on a discretionary basis). His early years were fabulously profitable. He generated 42% returns on average, with overwhelming investor interest. Like Buffett, Hohn focuses on big companies with powerful moats that help them stave off competitors. He also holds his positions for an average of nine years, a timeline more akin to a private equity firm than a trader. But unlike Buffett, Hohn spurns a whole host of industries, including banks, utilities, media, and insurers. Hohn says there are perhaps just over 200 companies in the world that are investable and, because of the uncertainties fomented by AI and climate change, that figure is decreasing. In those early days, Hohn’s demands to generate returns and fund the foundation took a toll on the staff helping to generate those profits, some now recall. “He was completely insatiable with a single-mindedness I had never encountered with anyone it was bruising,” says one former employee. “[But] he made everyone that worked with him very rich.” For Hohn, the key metric for any company is pricing power, highly valuing the ability to push through inflation-busting price increases. He is not dazzled by stratospheric revenue growth like other investors. “Chris likes buying global monopolies or duopolies,” says TCI analyst Ben Walker. His investment style is also partly informed by a desire for control. Like Buffett, he thinks of himself as an “owner” of his stocks, rather than a speculator, and it is from this mindset that he acts as an activist to defend his interests in a company. For instance, Hohn does not like to short, or bet against, stocks, because the investor on the other side of the bet can recall their shares at any time and crystallize a loss. Short sellers can also be subject to short squeezes, where investors target them by buying the stocks they are betting against, forcing them to close their position. “I don’t like to hold my destiny to other people,” he says. Through that lens, his highly irregular portfolio starts to make more sense. At its core is 31% in infrastructure, including two Canadian railway firms, Spanish infrastructure company Ferrovial (BME: FER), and French construction company Vinci (EPA: DG). “Railroads, toll roads, airports, cell phone towers,” says Hohn rhythmically, punctuating each category by tearing out a page from an investor deck and slamming it on the coffee table in front of him. It is nearly impossible for rivals to pony up the cash or build a business case to justify a new highway or railway next to an existing one, or to get the regulatory approvals for a new airport. “Is AI going to be able to compete with a toll road or an airport? Probably not,” says Hohn. “Whether an electric car drives on a road or a petrol car [does], it makes no difference.” Perhaps the most characteristic Hohn investment is the GE Aerospace holding. He has put 18% of his entire fund, some $14 billion, into this single stock, a position so large it has little comparison in the hedge fund industry. What rationale could there be for making such a bet? “Airlines are a very competitive industry, thousands of airlines, lots of new entrants, but in aircraft engines there hasn’t been one new entrant for 50 years,” he says briskly. It can take on average 20 years for aircraft designers and builders to invite jet engine manufacturers to make bids, he explains, further narrowing the opportunities for a successful competitor. Even then, they would worry that a new competitor with cheaper engines may have issues that reveal themselves after years of use. “So the answer to the question is we study the barriers to entry very closely,” he says. Former employees say Hohn does not get emotionally attached to stocks, no matter how many years he has remained invested, giving him the flexibility to sell at a moment’s notice if he thinks the thesis has changed. Until recently, for example, the fund had an $8 billion position in Microsoft (NASDAQ: MSFT) — based on the thesis that the company has cornered corporates with a cost-effective bundle of services, such as Office and Teams, that are difficult for upstarts like Zoom to compete with. But the steady drumbeat of productivity tools from AI company Anthropic has raised doubts about its dominance of this space. For Hohn, the thesis had changed. This year, he cut the entirety of the fund’s position. “Chris doesn’t flirt with stocks,” says John Armitage of hedge fund Egerton, one of the most profitable managers of all time and an old mentor of Hohn. “He’s all in, or not in.” ‘I’m quite a direct guy’ The conviction that makes Hohn a committed stockpicker also makes him a fearsome activist. His first scalp, news stories of which are still framed in his office, was the defenestration of Werner Seifert, CEO of the Deutsche Börse (FWF: DB1Gn) stock exchange, in 2005. A smarting Seifert later wrote a book about Hohn’s no-holds-barred campaign, entitled Invasion of the Locusts. Hohn has become known for delivering blunt one-liners at the start of meetings with his targets, because “he can’t help himself,” according to one person that knows him. For example, he met Rajeev Misra, then CEO of SoftBank’s (9984.T) Vision Fund, around six years ago to discuss the financing extended to fraudulent German payments company Wirecard. Around that time, TCI held a rare short against Wirecard. Before saying anything else, Hohn told Misra “what you guys have done over here is very foolish,” according to a person with direct knowledge of the meeting. “I’m quite a direct guy,” says Hohn, when the FT recounts the anecdote. “I think they did do a few foolish financings.” Multiple people close to Hohn say that while he seemed to have a vast intellect, he can struggle with interpersonal relations. “He is not grounded by traditional societal norms,” says one former employee. “He doesn’t mind offending people.” Hohn pushes back against this assessment during a call alongside his second wife Kylie. Did people flag that he was neurodivergent, she asks? “I wouldn’t classify myself as neurodivergent,” he says. “OK,” she replies. Instead, Hohn describes himself as “unconstrained by traditional norms” like “hoard” your money or “run away if something happens” to a stock. Hohn may be a fierce activist, but he is not always a successful one. In 2008, the fund got bogged down in activist battles against U.S. rail company CSX (NASDAQ: CSX) and Japanese electricity wholesaler J-Power (TYO: 9513). Unlike some of its rivals, TCI did not rebound strongly in 2009, leading to redemptions from investors and the departure of staff. There was also the activist campaign to break up Dutch lender ABN Amro on the eve of the 2008 financial crisis. The resulting takeover — then the biggest banking deal of all time — netted $1 billion for the fund. But the payout ended up costing the UK taxpayer billions as toxic mortgage positions ultimately took down the Royal Bank of Scotland (NYSE: NWG), the lead buyer in the ABN Amro consortium. “I learnt over the last 20 years that you are better off to find a great company which is well managed and well governed than try to find a bad company and change the management or sell the company,” Hohn says. It was also a painful time for Hohn personally. A few years later, in 2012, Cooper began divorce proceedings against him. She was eventually granted a £337 million settlement in 2014, at that point, the largest ever recorded in the UK. The case became infamous as Hohn successfully argued that his status as an “unbelievable moneymaker” justified him keeping a larger than ordinary amount of their assets. “The financial crisis and divorce were my dark nights of the soul,” he now says. “Evolution occurs out of suffering.” People around Hohn say that he has moderated himself significantly over the past several years, a point partly made by the tenure of his analyst team, which is on average 14 years. Asked if he is a tough boss, he replies: “I think in my early days as an investor, that was true. There was a desire to really be the best. That desire is still the case today. But I would say I have changed a lot over the last 10 years.” Hohn’s veer towards the transcendental was sparked by his second wife, Kylie, a Harvard-trained academic with a doctorate in Slavic languages, whom he met in 2018. Hohn believes it has not only made him a better person, but a better investor. “When I met her, she said, ‘What do you know about consciousness?’” says Hohn. “I said absolutely nothing. She handed me a pile of books and said, ‘You better start learning, then!’” He adds that from the experiences they have had, he knows that they have had “past lives together." In an interview, Kylie confirms as much. “He leapt along the room on our third date and he said, ‘What the hell is going on, I already know you,’” she says. Already one of Britain’s most generous and prolific givers to charity through his foundation, Hohn has recently turned his philanthropic attention to spiritual causes. He co-founded what he says is the only UK charity dedicated to spiritual education, LightEn, with his wife. Annual reports in the foundation’s first three years of operation since 2023 show TCI contributed £29.3 million. The organization is centered around two retreats. The first, which Hohn has visited, is off the coast of Spain in Mallorca and run by the spiritual educator Zulma Reyo. Her book Inner Alchemy: The Path of Mastery, includes an acknowledgement to the Hohns. The other is under construction on more than 480 verdant acres in North Carolina, which Kylie Hohn hopes will begin operation next year. “It’s scattering many seeds of change but through love and connection to the highest aspect of ourselves,” she says. Ultimately, the Hohns want to help people better connect with their souls, which they argue would allow for greater empathy between human beings and hopefully an end to wars. “Humanity is on the wrong path and the state of consciousness of the world is not where it needs to be,” Chris Hohn says. “We need to choose peace not war. We need to choose love not hate.” People that know Hohn say he has been far happier since meeting Kylie and taking his spiritual turn — even if they have to put up with lengthy lectures on spiritual matters. “The worst thing about seeing Chris is you will get a one-hour lecture about spirituality, and if you’re a friend you get 40 links about spirituality or the next life,” jokes one person close to him. “All of his friends are happy to see him happy.” But Hohn’s dedication to spirituality and historic donations to causes including climate change — he has been a significant backer of the Extinction Rebellion activist group — can be seen to conflict with his work on maximizing profits as a hedge fund investor. For instance, his investments in Safran (Euronext Paris: SAF), GE, and Airbus (Euronext Paris: AIR) are all indirectly supporting companies that are helping countries re-arm. After being among the most vocal investors on climate change a few years ago, forcing companies to set out climate plans, he has more recently held off publicly pushing his companies to take even stronger action. Hohn admits grappling with the conundrum, and says his son has made the same observation. “My mindset had always been, maximize the profits and give the money to charity the charity can have the greatest leverage with the most money,” he says. However, he brings it back to his work in spreading spirituality, adding that this delineation may not be necessary: “If investors were more conscious, they would back more funds that were more impact-focused than profit-focused. “I do think we need to move to a world where we have more conscious investors where maybe they say part of my portfolio can go to making money. But another part must go towards having impact in the world,” he adds. Hohn says his spiritual outlook has made him a better investor because while “analysis is part of investing, intuition is another part." But he is no less demanding than he was. He recently threatened that each director of Spanish airport operator Aena (BME: AENA) would be personally liable if it did not raise its airline tariffs sufficiently. And his unyielding nature endures. The fund retains large positions in rating agencies S&P and Moody’s (NYSE: MCO), which make up 17% of the portfolio, and Visa (NYSE: V), which is 13%, as of the end of March. All have suffered so far this year as investors question their viability in the new age of AI. On rating agencies, he says, the real investment is in trust. “Investors have to trust [a rating], issuers have to trust it, regulators have to trust it. All this debt is held by insurance, pension and banks and you need a single source of trust.” “Buffett told me [about Moody’s]: if the financial crisis didn’t kill it, nothing will,” says Hohn. “He made me pledge that if we ever sold our shares in Moody’s we would sell to each other.” He has reached a stage, however, where losses hurt less than they once did. Roughly $12 billion of the fund’s capital is his, and consequently he is far less concerned about losing his investors if there is a dip in returns like in 2008. Even if his returns fell from 20% a year to 10%, he says, in seven years he would double his money to over $20 billion. “[If investors] say active management is dead, or you didn’t do well, it doesn’t matter,” says Hohn. “Go compound $20 billion at 10 or 15% a year [and] it’s more money than I can spend charitably.” He does not accrue yachts and holiday homes like other billionaires; he drives a Toyota Prius and wears a cheap plastic watch. Once again, he quotes a familiar figure to put his future into perspective. “Warren Buffett was asked when he invested in Coca-Cola (NYSE: KO) [if] it was a risky investment,” says Hohn. “He said it depends on your time horizon. For my capital in the fund I can have a forever time horizon.”

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5/20/2026

Elliott Ramps Up Its AI Efforts With Key Hire From Blackstone

Bloomberg (05/20/26) Parmar, Hema; Singh, Preeti

Elliott Investment Management hired former Blackstone Inc. (NYSE: BX) executive Teresa Sweeney to run the roughly $80 billion hedge fund firm’s global research and data science group. Sweeney joined this month and is expected to build out artificial intelligence for the unit, which houses about 40 research members and three data scientists who handle due diligence and research for prospective deals, according to people familiar with the matter. Paul Singer’s firm, known for its activist campaigns, aims to create a single repository that houses its data and research that can be accessed companywide and utilizes AI. It also plans to use AI to amplify the firm’s proprietary insights. Elliott’s research and data science group works with expert networks, manages data procurement and third-party data sets and conducts background checks. Sweeney worked at Blackstone for about four years, overseeing strategy for its data science team and holding the title of chief operating officer for that group, according to her LinkedIn profile. She previously worked with private equity clients for consulting firm GLG. Like other hedge funds, Elliott is utilizing AI internally and betting on the technology, including making a multibillion-dollar investment in Synopsys Inc. (NASDAQ: SNPS) with the goal of pushing for changes at the chip-design software maker.

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5/19/2026

Editorial: The Proxy Advisers Strike Back

Wall Street Journal (05/19/26)

The WSJ editorial board writes that proxy advisers Glass Lewis and Institutional Shareholder Services (ISS) "are back to their bad old ways of bullying companies. This month the duopoly joined New York City Comptroller Mark Levine’s campaign to stop Exxon Mobil (NYSE: XOM) from vamoosing to Texas." Exxon investors will vote on the company’s plan to move its legal home to Texas from New Jersey at its annual shareholder meeting on May 27. In announcing the move, Exxon noted that Texas has established specialized business courts “designed to resolve complex disputes efficiently” and that “apply clear, statute based standards.” Texas also lets companies domiciled in the state require that investors hold at least $1 million in market value, or 3% of voting shares, for six months to submit shareholder proposals. Companies can also require shareholders to own at least 3% of shares to bring lawsuits for breaches of fiduciary duty and self-dealing. Activists with little stake in companies have abused the shareholder proxy process to drive their environmental, social and governance (ESG) political agenda. This includes resolutions requiring CO2 emission cuts and workforce diversity audits. Plaintiff firms and government pension funds are using shareholder lawsuits to shake down companies. It’s often less expensive for companies to settle lawsuits than defend against them. One reason is courts in states like Delaware and New Jersey have become unpredictable. Recall how a Delaware judge in 2024 invalidated Tesla (NASDAQ: TSLA) CEO Elon Musk’s pay package—which shareholders had twice approved—on the dubious rationale that it violated the state’s “fairness” standard. All of this explains why Exxon is joining a parade of companies, including Tesla, Space X, Coinbase (NASDAQ: COIN), and Dillard’s (NYSE: DDS), that have moved their legal homes to Texas. Politicians like Mr. Levine, who oversees New York City’s worker pension funds, worry they’ll have a harder time raiding companies based in Texas. Glass Lewis and ISS, which control 90% of the proxy advisory market, also fear their power over companies will wane if activists face a higher burden to bring ESG resolutions. The duopoly offers consulting services to businesses on how to win shareholder votes, so the firms profit from more ESG proposals. Exxon hasn’t sought to amend its bylaws to limit shareholder resolutions, but it hasn’t ruled out the option. Mr. Levine is urging shareholders to vote against its move because he says it “sets the stage for the potential erosion of shareholder rights under Texas state law.” Huh? Limiting access to the proxy ballot for political activists who don’t have a stake in a company’s long-term success is in the interest of shareholders. Reducing frivolous litigation and payouts to plaintiff attorneys would also benefit shareholders who ultimately pay a company’s legal bills. ISS echoed Mr. Levine’s arguments this week in recommending a vote against the move. “The company has demonstrated a degree of hostility to shareholders’ exercise of certain of these key accountability mechanisms in recent years,” ISS wrote. It’s true Exxon has opposed ESG resolutions. But by describing them euphemistically as “accountability mechanisms,” ISS is showing its left hand. ISS also complained that Exxon’s amended bylaws would provide “an exclusive forum provision” to litigate shareholder complaints in federal court in southern Texas or the state’s special business courts. Glass Lewis said in its benchmark advisory policy that such “forum selection clauses are not in shareholders’ best interests.” But as Exxon replies, a “substantial portion of the S&P 500 including the majority of Delaware incorporated issuers, maintain exclusive-forum provisions designating a single court for internal affairs litigation.” The proxy advisers don’t want Texas courts to be the sole arbiters of shareholder lawsuits because the state’s judges may be less likely to indulge strained liability theories, such as those in the lawsuit against Mr. Musk’s compensation. Glass Lewis and ISS have been trying to rehabilitate their political image amid stepped-up scrutiny from the Securities and Exchange Commission, state Attorneys General and Members of Congress. But their opposition to Exxon’s move underscores their unholy alliance with progressive activists, government pension funds and plaintiff attorneys. Breaking the proxy advisers’ power would require legislation, which needs Democratic support. But don’t be surprised if more companies seek to escape their clutches by moving to Texas.

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