Well, it certainly doesn't hurt. Still, it takes more than an SEC filing or an angry letter to management to encourage (or force) change at an underperforming portfolio company with entrenched executives and directors.
Hudson Executive Capital (HEC) made a splash when it formed early last year, although we remain skeptical. Last week HEC finally announced its first project, as financial media picked up the story approvingly.
It's worth studying the situation. Established activist Engaged Capital began the work at medical device manufacturer HeartWare (HTWR). In a current blog post, we explain it appears HEC merely followed Engaged into the company, with no clear or specific plan for change there.
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