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A market downturn hasn’t made activist investing any easier. Here’s why.


Hey there. Dan DeFrancesco checking in from a NYC that just keeps getting colder. 

The House Financial Services committee’s hearing on the blowup of crypto exchange FTX was Tuesday, but it just wasn’t the same without the guest of honor — FTX founder Sam Bankman-Fried — who was arrested Monday in the Bahamas. 

Still, that’s not to say we didn’t learn anything at the hearing. FTX’s new CEO said it could take months to track down the company’s assets, adding that the crypto exchange used QuickBooks, (probably not the type of promotion the accounting tool was looking for). 

And the fun isn’t over yet! The Senate’s Committee on Banking, Housing, and Urban Affairs holds its hearing today, which will include FTX backer and Shark Tank judge Kevin O’Leary and actor-turned-crypto-author Ben McKenzie.  

In the meantime we’ve got stories on 71 VCs that are poised to make some noise in 2023, how one financial firm is axing holiday bonuses altogether, and a step-by-step plan for how to know when it’s time to go all-in on your side gig

But first, I think it’s time for a change. 


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carl icahnCarl Icahn

REUTERS/Jeff Zelevansky

1. Activist investing ain’t easy.  

You’d think most companies’ shareholders would be open to change to boost sagging stock prices. 

But even with a market downturn, activist investors’ campaigns haven’t been the cakewalk some might expect.

Insider’s Daniel Geiger, Rebecca Ungarino, and Casey Sullivan spoke to industry insiders — including famed activist investor Carl Icahn — about why the current landscape isn’t as accepting as some might think to activist campaigns. 

One issue activists face might seem obvious — the M&A market, a common lever campaigns rely on, is basically dormant — but there are plenty of other factors at play, which are covered in the story. 

But when the going gets tough, the tough get going, and a difficult market environment doesn’t mean we’ll see the number of campaigns decrease. In fact, some insiders expect 2023 to be another big year for activists.

Click here to read more about why top activist investors like Carl Icahn say this line of work is riskier than ever. 


In other news:

Ritika Pai VCRitika Pai is an investor at ICONIQ and one of our VC rising stars.

Ritika Pai

2. VCs to watch in 2023. We asked readers, industry insiders, and last year’s rising stars to identify the top up-and-coming venture investors. Here’s our list of 71 rising-star VCs

3. Ken Griffin vs the IRS. The billionaire founder of hedge fund Citadel is suing the IRS and Treasury Department after his tax records were obtained and published by news website ProPublica, The Wall Street Journal reports. Click here for more on the suit.  

4. JPMorgan partners with a fintech helping companies manage cash. Trovata, whose clientele includes Square, Etsy, and Krispy Kreme, will work with the bank’s asset management division to help companies get higher yields on their idle cash. More on the deal here

5. EY employees are getting coal this year. As per the FT, the Big 4 accounting firm will not be offering holiday bonuses to its US staff this year. Here’s why

6. Laid-off tech workers might not be unemployed for long. A new report shows job postings for tech-focused roles are on the rise. Read more on why tech workers can rest easy

7. Those private-market valuations are about to have a real-world realization. The end of the year means VC firms will have their portfolios audited, which will lead to tough discussions about the value of some startups. More on the looming so-called “audit cliff.”

8. How to go all-in on that side hustle. Here’s a five-step plan to help you decide when that side gig you have should be the only gig you have. What are you waiting for?

9. Elliott Management doubles down on Nielsen deal. The activist hedge fund purchased the debt it needed to takeover the television ratings company, the FT reports. Here’s why

10. The guy who filmed the NYC’s famous “Pizza Rat” is still making money off the viral video. Matt Little explained how the seven-year-old video could eventually help him buy a house. Why the “Pizza Rat” still lives on today


Edited by Kaja Whitehouse (tweet @kajawhitehouse) in New York and Hallam Bullock (tweet @hallam_bullock) in London. 

 

Read the original article on Business Insider