We believe that engaging with company management teams and boards of directors can be integral to the investment process. Through these engagement efforts, we often advise companies on actions that they can take to, in our view, improve their prospects for long-term success and investment returns. Additionally, many of our clients ask us to vote proxies on their behalf for their portfolios, a responsibility that we take seriously. We may vote against a company’s board, or support proposals or director slates that have been presented by other activists, when our analysis finds that doing so is in our clients’ best economic interest.
We may, on a case-by-case basis, share our views publicly, where we believe we can help deliver shareholder value to clients. This tool would only be used in cases where prior engagement with the company have not resulted in a different path. This infrequent action does not change our overall investment model or company engagement approach.
Engaging with company managements plays a critical role in helping to identify, understand, and appropriately consider investment risks and opportunities. Our firm’s engagement with company management teams depends on the materiality of the issue, the responsiveness exhibited by the company to past communications and our assessment of whether such engagement is in the best interests of our clients. Dialogue can range from an agenda item on a regular investor call, to a focused communication regarding a particular issue. Our engagement activities can include meeting with company boards, speaking to non-executive directors, carrying out proxy voting or participating in stakeholder dialogues. In the event that a company is not responsive to our initial engagement efforts, we will consider additional meetings with management, meetings with the Chair and other board members, and potentially voting against members of the board in order to escalate our concerns.