Worthwhile piece. I organised UBS' first shareholder activist (called "shareholder engagement" for obvious reasons) back before MIFID. Curious, what evidence is there for your comment, "...while it is often the smaller companies that suffer from poor management and a lack of growth."?
Also, while it is true that some smaller companies tend to have much higher growth than large companies (and these companies become the large caps of the future), the bulk of small cap companies remain small cap companies because they don't grow as much as the larger ones.
Very interesting article, I had no idea of this difference. It would be helpful to have an example for each to get a sense of the different goals, methods and achievements of activist campaigns for small caps vs large companies.
Worthwhile piece. I organised UBS' first shareholder activist (called "shareholder engagement" for obvious reasons) back before MIFID. Curious, what evidence is there for your comment, "...while it is often the smaller companies that suffer from poor management and a lack of growth."?
The World Management Surveys that are published every year show that multinationals tend to have higher management scores and with better management comes higher productivity and higher growth. See an overview of the 2024 results here: https://klementoninvesting.substack.com/p/productivity-and-the-quality-of-management
Also, while it is true that some smaller companies tend to have much higher growth than large companies (and these companies become the large caps of the future), the bulk of small cap companies remain small cap companies because they don't grow as much as the larger ones.
Thanks J. I wonder what the transition matrix shows for small companies.
Very interesting article, I had no idea of this difference. It would be helpful to have an example for each to get a sense of the different goals, methods and achievements of activist campaigns for small caps vs large companies.