Schulte Roth & Zabel partner Ele Klein was featured in The Deal‘s article, “SEC Evaluation of Swap Disclosures Misguided,” discussing the SEC’s proposed derivatives disclosure rule and how it would impact activist funds.

According to the SEC, at most seven activist investors held gross positions of more than $300 million, a disclosure threshold of the rule, on any given day between 2021 and 2022.

Ele questioned this data explaining that very few activist funds are capable of taking $300 million positions, in common shares or derivatives, in publicly traded companies.

“Most activists can’t or won’t take that large a position,” he said. “And just because some activists are capable doesn’t mean that many of them actually would take such a large position at one target.”

Read the article.

Schulte Roth & Zabel was featured in The Deal‘s review of the top legal advisers to corporations and activists in the first half of 2023.

Noting the firm’s work with “some of the biggest guns in the activism space,” including clients Trian Fund Management, Starboard Value, Politan Capital Management and D.E. Shaw & Co., the article commented that the firm “as usual, was also a top adviser.”

The article highlighted recent activist matters, including:

• Schulte partners Ele Klein and Michael Swartz advised Politan Capital Management in its successful litigation at Masimo, which led to the election of Politan managing partner and chief investment officer Quentin Koffey and another director at the annual meeting.
• Ele advised Trian Fund Management in its public campaign for improvements at Walt Disney Co.
• Ele also served as counsel to Starboard Value in its investment in and addition of Jeff Smith to the board of RB Global Inc., formerly known as Ritchie Brothers Auctioneers Inc.

Read the article.

Schulte Roth & Zabel partner Heather Wyckoff authored a piece in Sustainable Growth Voice on ESG and the sentiment surrounding the term as many in the US see it as losing relevance, having become an overly broad umbrella term that covers too much ground.  

Heather, with the assistance of Schulte associate Maria Liberopoulos, explores aspects of discussing ESG through a framework of kitchen lingo. The article discusses multiple perspectives, including investment manager marketing efforts, a political environment in which certain states are announcing ESG priorities while others are seeking to limit ESG considerations; and sources of risk and opportunity.  

Read the article here.