Undervalued, Premium Assets
Small - Mid Cap Focus
  • Companies with strong, defensible franchises
  • Current market value well below
    intrinsic value (>30% PV)
  • Identifiable reasons for value gap
  • Multiple paths for value creation
  • Management and/or Board interested
    in creating value for shareholders
  • $500M - $8B market cap offers
    highest returns
  • Most activist funds too large to
    invest there
  • Under-covered by Wall Street research
  • Engaged Capital’s deep research expertise maximizes opportunities
  • Our Wall Street connections help
    initiate coverage
   
Information Advantage
Private Equity Style in Public Equities
  • Knowledge based, phased
    investment opportunity
  • Stronger conviction leads to
    larger investment
  • Better risk management and
    increased returns
  • Uncorrelated returns to the equity market through catalyst based investing
  • Engaged Capital becomes the
    catalyst for change
  • Invest for influence not control
  • Do not have to pay a control premium
  • High impact dialogue with management/Board
  • Focus on portfolio companies’ long-term interests (hold 2-5 years)