Watch Your Derivatives: The Role 13Fs Play in Detecting Shareholder Activism
SEC Form 13F public filings can help companies understand whether the threat of a proxy fight is imminent and, crucially, take steps to defend themselves. 13F filings, as they’re known, reveal the share position of institutional investors or funds and help companies understand whether a specific investor is beginning to accumulate a larger portion of […]
David Farkas is the Head of Shareholder Intelligence at Georgeson LLC. This post is based on an article that was featured in the July/August 2024 issue of The Deal Lawyers.
SEC Form 13F public filings can help companies understand whether the threat of a proxy fight is imminent and, crucially, take steps to defend themselves.
13F filings, as they’re known, reveal the share position of institutional investors or funds and help companies understand whether a specific investor is beginning to accumulate a larger portion of shares inside their firms. This is a requirement for investors with more than $100 million in equity assets under management.
However, investors do not need to disclose this information until 45 days after the quarter end. For example, if an investor acquired a 4.9% equity position in a company during the first half of January, it only needs to file a 13F with the SEC by May 15.
As a result, a significant gap exists between the point an investor builds up a position in a company and the time such share position information is available.
