Ele Klein discusses SEC developments and shareholder activism with FundFire

Ele Klein was quoted in FundFire discussing how proposed SEC changes could affect activist hedge funds and shareholder campaigns.

Ele noted that most hedge funds rarely rely on Rule 14a-8 for their campaigns, meaning changes to the rule would likely have a greater impact on single-issue activists, including those pursuing environmental, social and governance initiatives. He explained that these proponents would still have alternative tools available, including formal proposals and “just-say-no” voting campaigns.

Ele also emphasized that activists can adapt to an evolving regulatory environment. “Every asset class has to manage within the regulatory, political, sentimental, strategic and reality-based world it operates in. Activism is no different,” he said. “As guidance or regulations change, companies and activists need to take that into account and, if necessary, adjust how they operate.”