Mantle Ridge, among the most unique activist investors out there, is back on the hunt for a company stake, with Dollar Tree in its sights, according to Bloomberg. For discount retailer Dollar Tree, it’s the third time in six years an activist has lurked around the company. This newsletter often points out that companies should always be on alert for activist campaigns, no matter how many times dissidents have come knocking.
Mantle Ridge was started roughly five years ago by Pershing Square vet Paul Hilal, who structured the fund to seek long-term limited partners, with a five-year time horizon, for a single name. His first campaign was aimed at train operator CSX, an investment that brought Hunter Harrison out of retirement and into the CEO role there. And now, like other activists before him, it appears he’s looking hard at Dollar Tree. Starboard Value launched a proxy fight against Dollar Tree in 2019 and five years earlier, Dollar General’s sale to Dollar Tree was prompted by activists Carl Icahn and Trian.
Turning to Capitol Hill, new guidance from the SEC will make it easier for shareholders to take action on issues such as climate change and environmental impact. Under the previous regime, companies were able to exclude shareholder proposals that required timelines for reaching targets on, for example, cutting greenhouse emissions. That was then, this is now. World leaders, environmental groups and activist investors are all ramping up pressure on companies to address climate change, and the SEC has now clearly signaled its support for that camp.
Meanwhile, at the COP26 Summit, the global financial community made some ESG-related news. As Reuters reported, “Banks, insurers and investors with $130 trillion at their disposal pledged on to put combating climate change at the center of their work, and gained support in the form of efforts to put green investing on a firmer footing.” TBD on how well they can execute on that commitment.
Have a great weekend,
Mike and Chris