In April 2012, Legion Partners Asset Management was established with the goal of becoming the leading small-cap activist fund for institutional and high-income investors. To produce superior risk-adjusted returns, Legion’s approach makes use of in-depth fundamental analysis, concentrated holdings, and skilled long-term-oriented active management. Investing in public shares using Their private equity strategy lowers risk and spurs innovation. Pension funds, foundations, private equity firms, investment firms, and other institutional clients are a few of Their investors. They seek out firms with solid fundamentals that are trading at substantial discounts to their intrinsic value and invest largely in stock and debt instruments of small and mid-cap North American enterprises. Their success is built on Their thorough analysis and in-depth knowledge of each investment, as well as Their professional, long-term-focused engagement.
Legion Partners Select High Net Worth Clients and Institutional Clients
In order to serve institutional investors’ long-term needs, Legion Partners was founded. Given that these investors have a long-term investment horizon, They deliberately crafted Their business strategy and crucial contractual provisions to provide strong alignment with Their investors and to foster a results-based culture that is centered on generating the best long-term performance. They consider that one of Their product differences and a key element of Their long-term orientation is the steady capital base supplied by Their institutional partners (CalSTRS is Their seed investor and has committed over $250 million with them since the start).
Security selection and expert shareholder activism are the two key components that closely drive Their investment process.
In the course of Their research, security choice, investing, and engagement processes, Legion Partners carries out unique research and thorough due diligence. Their ultimate objective is to acquire better insights into the operations, value, management, board composition, governance, and culture of a company. Their private equity strategy for investing in the public markets is ideally suited to and supports long-term shareholders’ interests. They are able to establish an individual thesis for important areas of development because of Their rigorous focus on due diligence, which also enables us to understand the core drivers of firms’ businesses and be a credible advocate for change when necessary.
With top executives and boards, They prefer to work quietly to strengthen corporate governance, boost long-term performance (with an emphasis on capital efficiency and ROIC), and considerably raise shareholder value over the long haul. They think it’s critical to assist businesses in strengthening their governance and asset allocation discipline in a way that will benefit long-term owners even after Legion Partners has sold its position because frequently Their institutional client base will maintain positions indefinitely.
Activism That Drives Value Is What They Do As Deep Value
Long-Term Focused Active Investors
To assure added value for the advantage and objectives of longer-term shareholders, Their corporate governance, or activist, style of investing makes use of deep quality security selection, a lengthy oriented ownership horizon, and active involvement or event-driven catalyst. In order to influence a portfolio firm’s policies, leadership, or strategic direction in the pursuit of improved long-term performance, Their activist tactics may include securing representation on the board of directors of the portfolio business.
Using Proper Oversight to Tap Potential
They think that weak business leadership and inadequate governance can significantly reduce long-term value. An effective way to protect value is by reducing risk. Excellent organizational governance and public regulation from long-term-oriented equity owners can also act as a significant catalyst to stop value erosion.
Keeping in mind long-term objectives
In the past, responsible activism has been able to significantly increase shareholder value and produce substantial, dependable, and dissimilar returns for investors. Their private equity strategy for investing in the public markets is clearly effective and well-suited to long-term shareholders’ interests. Additionally, the thorough due research They perform on each potential portfolio firm reduces the overall potential losses and improves the risk profile for Their clients.
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