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The Sodali 40 Q4 2024 offers key insights into the latest trends in activist investment. Here are the key trends observed for the quarter:
Mantle Ridge’s 4.1 million share position in Air Products & Chemicals was the largest new position for the quarter. Starboard and Elliott initiated the largest number of new positions, with four each. Increased interest in the Japanese market was evident as three of the top 10 largest new positions were in Japanese companies.
Oasis initiated two of the three largest positions by percent of outstanding shares, with a 13% stake in NEC Networks & System Integration and a 7% stake in Macromill Inc. Elliott Management and Oasis liquidated their holdings in Vantage Towers and Raysum, respectively, representing the largest reductions for the quarter.
The United States maintained its top position among the regional targets of Sodali 40 investments, with a market value increase of just under 6%. The Asia Pacific region saw a significant 17.4% increase in market value for the quarter and a 45.6% year-over-year increase.
There was a 2.75% overall increase in market value for all investments in 4Q2024 relative to 3Q2024. However, the Industrials sector’s share of total assets slipped to 21% from 23%. Consumer Staples saw a 27% increase in value, surpassing the Materials sector, while Utilities experienced an 11% reduction in value, dropping below the Energy sector.
Aerospace & Defence, Capital Markets, and Software remained the most heavily represented industries. Interactive Media & Services moved up two spots to become the fourth-ranked industry this quarter, showing significant year-over-year growth.
The largest year-over-year increases in market value were in Aerospace & Defence (+$5.2 billion), Interactive Media & Services (+$3.3 billion), and Passenger Airlines (+$2.8 billion). The biggest declines were in Electrical Equipment (-$4.6 billion), Ground Transportation (-$3.1 billion), and Entertainment (-$2.5 billion).
Biotechnology and Regional Banks saw the highest number of liquidations, with 41 and 56 respectively. Personal Care Products, Consumer Finance, and Automobile Manufacturers experienced notable increases in market value, while Rail Transportation, Integrated Telecommunication Services, and Independent Power Producers & Energy Traders saw significant decreases.
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Summary
Discover the latest key trends in the investment landscape, including Mantle Ridge’s significant new position, Starboard and Elliott’s active initiations, and the growing interest in the Japanese market. The United States and Asia Pacific regions show notable market value changes, while certain industries and sectors experience shifts in representation and value. Read more to uncover the markets, sectors, and industries driving these trends.
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