Latest news with #activistinvesting
Japan Times
a day ago
- Business
- Japan Times
Elliott calls for Sumitomo Realty improvements in rare letter
Elliott Investment Management is calling for Sumitomo Realty & Development to improve shareholder returns and corporate governance, saying the Japanese real estate developer's stock is worth 40% more than its current value. The New York-based investment firm released a public letter Monday, saying it would vote against Tokyo-based Sumitomo Realty's senior management at the upcoming annual shareholders meeting if there's no meaningful progress made on improving its value. The letter is a rare public move by Elliott, which has kept quiet on most of its Japan investments. In the past year, news reports have unveiled the firm's activist engagement with companies like Tokyo Gas, Mitsui Fudosan and SoftBank Group. Elliott's stake in Sumitomo Realty was first reported in March. Shares of Sumitomo Realty fell 0.6% to ¥5,468 on Monday morning in Tokyo. The stock has gained about 11% this year. A Sumitomo Realty representative wasn't immediately able to comment. Elliott said Sumitomo Realty is one of the most undervalued real estate developers in Japan, assessing that its stock is worth at least ¥8,000, based on the valuation of its real estate holdings and peer companies. It called on the company to unwind its cross-shareholdings in companies such as Taisei and Obayashi, increase its shareholder payout ratio to 50% or more and set a return-on-equity target of at least 10%. Elliott owned a 2.99% stake in Sumitomo Realty at the end of March, according to public filings from the company. In the letter, the investment fund said it has built up a more than 3% holding. In Japan, shareholders who have held 3% of a company for more than six months can call a special meeting. Most of Elliott's Japan investments have focused on boosting returns through share buybacks, selling off older real estate holdings and unwinding equity stakes in other companies. Sumitomo Realty's annual shareholder meeting is scheduled for June 27.
Bloomberg
03-06-2025
- Business
- Bloomberg
US Hedge Fund Raider Turns London Defeat to Victory
US hedge fund manager Boaz Weinstein was rebuffed when he tried storming the boardrooms of seven UK investment firms earlier this year. But the activist has since shown he didn't need to win to achieve his goals and to make money. To recap, Weinstein sees an opportunity in publicly traded companies that invest their capital in stocks and sometimes private firms. Shareholders of these so-called investment trusts get something similar to a mutual fund with the added benefit of daily liquidity and access to equity investments they might be unable to make directly. These trusts typically trade at a discount to their underlying portfolio value. Blame corporate bloat – the costs of a board, advisers, financial reporting and so on – and often mediocre to poor investment performance.
Reuters
28-05-2025
- Business
- Reuters
Hedge fund Saba reaches agreement with another investment trust target
LONDON, May 28 (Reuters) - Activist hedge fund Saba Capital Management has reached a restructuring deal with another of the UK investment trusts it has targeted in a longstanding campaign to achieve higher returns. Saba said on Wednesday it had agreed with CQS Natural Resources Growth & Income (CYNL.L), opens new tab that the investment trust will offer investors a cash exit for their shares at full value, or if enough investors stick with the fund, it will raise dividends and lower management fees. Five of nine UK investment trusts have voted to restructure or liquidate this year because of Saba's $5.5 billion activist campaign that targeted UK investment funds. Saba Capital Management, founded and run by Boaz Weinstein, began the campaign in 2024 to overhaul seven close-ended investment trust boards over performance, adding more funds in February. Investment trusts hold a range of stocks and because of the costs of running them, funds' shares can trade at a discount to their net asset value (NAV). Weinstein first demanded that the trusts vote to give Saba board seats so the hedge fund might run those funds. But shareholders rejected this and more than half have now decided instead to restructure. Saba's CEF Opportunities 1 fund is up 5.11% in May and down 0.76% for 2025 so far, said HSBC data seen by Reuters. Here is the latest campaign update: "This outcome gives CYN (CQS Natural Resources Growth & Income) shareholders a clear choice: full liquidity at NAV or the opportunity to stay invested in a trust with a higher dividend and a reduced management fee. It's a true win-win," Weinstein said in a statement. Yet some investors like these discounts and restructuring means a loss of opportunity, like catching the funds at a cheap moment and collecting dividend payments. "Discounts to NAV are not always bad," said Chris Barter, an investment trust investor. "If you're an income investor buying an investment trust at a 15-25% discount, you'll achieve a yield which mutual funds and ETFs simply can't reach."
