Why Elliott Management is a Powerhouse in Corporate Activism

Elliott Management is a powerhouse in corporate activism, with a proven track record of success in driving change. They've been involved in over 200 activist campaigns worldwide, making them one of the most active activist investors globally.

Elliott's team of experienced professionals has a deep understanding of the companies they target, which enables them to identify areas for improvement and develop effective strategies for implementing change.

Their approach is often described as "constructive activism", focusing on finding solutions that benefit both the company and its shareholders.

Elliott doesn't shy away from a public fight.

The firm has been involved in 252 activist campaigns against 225 different companies, according to FactSet.

Elliott's tactics can be quite severe.

FactSet has designated Elliott a SharkWatch50 activist based on the frequency of the firm's activism.

Elliott pens and publishes letters and presentations targeting companies that need a facelift.

Elliott Management's investment campaigns have a proven track record of success, with a focus on long-term value creation.

Their activist approach has led to significant returns for investors, with an average annual return of over 20% since 2007.

Elliott's campaigns often target underperforming companies with untapped potential, where they can apply their expertise to drive change and boost shareholder value.

Elliott has made around 40 acquisitions since forming Evergreen Coast Capital in 2015.

In the years since, the firm has invested in a variety of companies, including a book retailer and a cloud connectivity firm.

One notable acquisition was Barnes & Noble, a well-known book retailer.

Elliott also acquired LogMeIn, a cloud connectivity firm, as part of its investment campaign.

The firm's acquisition strategy has been quite active, with a total of around 40 deals made since 2015.

Cubic, a defense and transportation manufacturer, was another notable acquisition made by Elliott.

Elliott retired the Evergreen name last year to avoid confusion with other companies.

Elliott is currently seeking representation on Starbucks' board. Under pressure from the activist, Starbucks named Brian Niccol, Chipotle's chief, as its new CEO, ousting Laxman Narasimhan earlier this month.

Elliott has a sizable stake in Starbucks and was in talks with leadership to help stage a turnaround of its stock price and business performance.

The investor is also involved in a campaign against Texas Instruments, where it has a $2.5 billion position. Elliott has called on Texas Instruments to commit to a $9 free-cash flow per share target in 2026.

Elliott is urging Texas Instruments to adopt a strategy to manage capacity instead of building it "far in excess of expected demand."

Elliott Management is actively pursuing oil and gas deals, a move that's unusual for Wall Street.

Investment bankers estimate that if oil prices remain above $100/bbl, Elliott could score investment gains of more than 80%.

Elliott's focus on shale basins highlights the unique economics of each region, with different investment opportunities available.

Each shale basin has different economics, which can be a challenge for investors but also presents opportunities for significant returns.

Elliott Management is known for pushing companies to make transformative changes. Elliott Investment Management steps up pressure on companies, as seen in the case of Southwest Airlines.

Elliott has a track record of acquiring significant stakes in companies to call for change. In the case of Southwest Airlines, Elliott owns more than 61 million shares, at least 10% of the company.

Elliott's goal is to boost shareholder value by urging companies to consider new measures. Elliott is seeking to boost shareholder value by urging BP to consider transformative measures.

Elliott has proposed a slate of candidates for company boards, as seen in the case of Southwest Airlines. Elliott has proposed a slate of 10 candidates for Southwest's 15-member board.

Elliott is willing to take bold action to achieve its goals. Elliott announced in June its plan to shake up Southwest Airlines, which has seen its shares lose more than half their value in the past three years.