Eric Rosenfeld: How institutional investors have come to recognize the value of activist investing

Eric Rosenfeld: How institutional investors have come to recognize the value of activist investing

November 23, 2019 0 By Kody Olson


Crescendo’s activist approach to obtain board representation.
A key metric for Crescendo is enterprise value to free cash flow.
Idea generation process from various sources. Idea investigation for undervalued companies.
Exit strategy out of an investment and off of boards. What recurring themes cause value to be held down.
Limitations or inefficiencies in management, operations, or specific divisions. An example of Crescendo’s many successes: Spar Aerospace. Why Canadian regulatory rules can facilitate shareholder activism.
The “Poison Pill” in Canada is more efficient. Proxy fight parallels to a political campaign.
Institutions much more willing to support an activist.
Why reputation holds intrinsic value for activist investors.