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ICOM CEO JOHN GLENN GRAU INTERVIEWED FOR THE MERGERMARKET TO DISCUSS TRENDS IN SHAREHOLDER ACTIVISM FOR 2025

Smaller campaigns show strength

The big trend is in operational activism, particularly in small-cap activism, where activity has been “stronger than ever,” said John Glenn Grau, president and CEO of InvestorCom, a proxy advisor who specializes in working on campaigns with companies that have market caps of up to USD 500m.

From 2019 through 2024, smaller cap campaigns had a higher success rate in four out of those six years simply because of less major institutional involvement, making it easier for an activist to push an agenda through, Grau noted.

Activists targeting very small campaigns are using playbooks from larger campaigns, adding such things as podcasts to the traditional mailing and phone call efforts, he noted.

The proxy advisor also spent much time on closed-end fund campaigns.

Saba Capital Management, a closed-end fund activist, targeted 10 various funds of Blackrock. The fund giant put in place election standards of a plurality for an uncontested election but a majority for a contested election for some of their funds, which Saba contested. Saba argued that in a contested election for a closed end fund, it is essentially impossible to get 50% of the outstanding shares to vote on any one director nominee. Yesterday, Saba announced it reached settlement agreements with BlackRock’s closed-end funds.

 

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