Undervalued Premium Assets

  • Companies with strong, defensible franchises
  • Current market value well below intrinsic value (>30% PV)
  • Identifiable reasons for value gap
  • Multiple paths for value creation
  • Self-inflicted missteps by management and board create the value opportunity, not the market

Small – Mid Cap Focus

  • $500M – $8B market cap offers highest returns and persistent opportunity set
  • 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

  • Universe of 1,400+ companies; typically only need to source 2-3 new core positions annually
  • Stronger conviction leads to larger investment
  • Uncorrelated returns; we manufacture our returns
  • Typically the most knowledgeable shareholder and board member

Private Equity Style In Public Companies

  • 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)