| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.96% | 0.4% | 3.06% |
| 2025 | 2024 |
|---|---|
| 3.1% | 1.7% |
The 13D Activist Fund returned 0.40% net in Q4 2025 versus 2.19% for the Russell 2000, underperforming in a large-cap dominated market. However, early 2026 performance suggests a more favorable environment with the fund up 6.77% versus 6.11% for the Russell 2000. Shareholder activism reached record levels in 2025 with 152 North American campaigns, up 20.6% from 2024, as the strategy evolved from stigmatized to necessary. The fund expanded internationally with first investments in Japan through Third Point's Ebara Corporation campaign and Elliott's Kansai Electric Power engagement. Portfolio turnover accelerated with five exits and five new positions added, including Integer Holdings (Irenic), Six Flags (JANA/Sachem Head), and WEX (Impactive Capital). The thesis centers on activism becoming essential as passive investing increases, reducing fundamental-based trading and requiring catalysts to realize intrinsic value. International opportunities, particularly in Japan with 154 live campaigns, offer significant value creation potential through margin expansion, enhanced capital returns, and improved governance.
The 13D Activist Fund capitalizes on the growing acceptance and necessity of shareholder activism by investing in companies where activist investors are driving value creation through operational improvements, capital allocation optimization, and corporate governance enhancements.
The fund expects to continue looking in the US and internationally for the best activism opportunities. As activism evolves globally, particularly in Japan and Europe where significant value can be found, the 13D Activist Fund will continue to adapt its strategy accordingly.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 14 2026 | 2025 Q4 | 1944.T, 9501.T, 9531.T, EBCOY, FUN, ITGR, KAEPY, WEX | activism, Japan, semiconductors, small caps, Utilities, value |
6361 JP 9503 JP ITGR FUN WEX |
The 13D Activist Fund leverages record-high shareholder activism levels, expanding internationally with first Japanese investments in Ebara and Kansai Electric Power. Despite Q4 underperformance in a large-cap market, early 2026 shows promise with the fund outperforming Russell 2000. Portfolio turnover accelerated as activism becomes necessary for value realization in an increasingly passive market. |
| Oct 27 2025 | 2025 Q3 | ABG, ALV, APD, BILL, EXEL, KVUE, MIDD, MRCY, PENN, PFGC, PSO.L, QRVO, RIOT, SWX, TRIP, TWLO, VSAT, VSTS, WK, YETI | activism, M&A, SMID Cap, technology, value |
PFGC TRIP VSAT WK |
Strong Q3 absolute returns of 8.88% despite lagging Russell 2000. Fund positioned for anticipated rotation from large cap growth to SMID cap value, supported by lower rates and increased M&A activity. Activist success rates have improved dramatically with Universal Proxy Card. Added five new positions with strong activist catalysts while exiting underperforming positions. |
| Apr 5 2025 | 2025 Q1 | AAPL, AVGO, BLCO, CL, CMG, CNI, DKS, FTRE, HR, JNJ, KVUE, MIDD, MSFT, OR.PA, PG, QRVO, SN, SWKS, WEN, YETI | activism, consumer, M&A, semiconductors, small cap, value, volatility | - | 13D Activist Fund underperformed in Q1 2025 due to geopolitical volatility disrupting fundamentals and M&A activity. The fund added four new activist positions including Starboard campaigns at Kenvue and Qorvo focused on operational improvements. Manager remains disciplined, holding through activist cycles rather than trading volatility, expecting markets to rationalize and activist catalysts to drive future returns. |
| Jan 13 2025 | 2024 Q4 | ALV, APD, AZTA, BBWI, ENV, EXEL, FTR, HR, JHG, LW, MDU, MRCY, NSIT, PSO, RIOT, RPD, SWX, THS, TWLO, VSTS | activism, Bitcoin, Corporate Governance, Data centers, M&A, Proxy Fights, SMID Cap, value | - | 13D Activist Fund outperformed Russell 2000 in Q4 while repositioning into five new activist situations. Record-high activist success rates of 86%, expected M&A tailwinds under new administration, and extreme valuation disparity between small caps (1.7x book) and large caps (5.22x book) support the concentrated, catalyst-driven approach targeting undervalued SMID cap companies. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
ActivismShareholder activism reached all-time highs in 2025 with 152 campaigns in North America, up 20.6% from 2024. The strategy has evolved from stigmatized to necessity as passive investing increases. Activism internationally has taken off with 119 new campaigns including 76 in Japan. |
Shareholder Activism Proxy Contests Corporate Governance Value Creation Board Representation |
SemiconductorsEbara Corporation is a semiconductor capital equipment powerhouse forming a duopoly in chemical mechanical planarization with Applied Materials. Advanced AI chips demand greater CMP intensity, offering Ebara clear growth runway and market share gains in metal CMP. |
Semiconductor Equipment CMP AI Chips Applied Materials Metal Planarization | |
NuclearKansai Electric Power is Japan's top nuclear operator with 6,580 MW capacity generating 48% of electrical output. Nuclear provides favorable cost structure making KEPCO Japan's most profitable electric utility with significant advantages for data center development. |
Nuclear Power Electric Utilities Japan Data Centers Clean Energy | |
Real EstateKEPCO has over ¥2 trillion in real estate investments including ¥809 billion of noncore real estate at fair value. These assets could be undervalued and worth in excess of ¥1 trillion, representing inefficient capital allocation that depresses ROE. |
Real Estate Assets Asset Sales Capital Efficiency Japan Real Estate Value Unlock | |
| 2025 Q3 |
ActivismActivist activity and success have been flourishing with the Universal Proxy Card increasing campaign success rates from 73% to 88%. The fund expects significant alpha generation from activists like Jeff Smith, Scott Ferguson and Dan Loeb as markets rotate into value investing. |
Shareholder activism Proxy contests Board representation Value creation Corporate governance |
ValueThe fund anticipates a rotation from large cap growth to SMID cap value, assisted by lower interest rates and a more robust M&A environment. Many overlooked SMID cap value stocks present opportunities as growth stocks become overbought. |
Value investing SMID cap Undervalued Market rotation Discount valuation | |
TechnologyMultiple technology investments including BILL Holdings, Workiva, and ViaSat represent opportunities where companies have strong fundamentals but face operational inefficiencies or market misunderstanding that activists can address. |
SaaS Software Technology platforms Operating leverage Rule of 40 | |
| 2025 Q1 |
ActivismThe fund focuses exclusively on activist investing situations, holding positions for the full activist cycle until catalysts are no longer compelling. Activist investors are keeping their heads down and focusing on portfolios despite market volatility, with 2025 already outpacing 2024 with 45 new campaigns versus 36 last year. |
Shareholder Activism Activist Campaigns Board Seats Value Creation Catalyst |
| 2024 Q4 |
Shareholder Activism2024 was a record year for shareholder activism with 128 new initiations in North America. Success rates continue to soar with activists achieving 96% success rate in 2023 and 86% in 2024 versus high 60s historically. Shareholder activism is becoming more mainstream with 40 non-activists launching new campaigns in 2024. |
Activism Proxy Corporate Governance Board Seats Value Creation |
M&AThe fund expects a more robust M&A market under the new administration and FTC head, which is generally a huge secular tailwind for shareholder activism. Several portfolio companies are positioned as potential acquisition targets with strategic buyers showing interest. |
Mergers Acquisitions Strategic Buyers Takeover Premium | |
ValueThe Russell 2000 is trading at 1.7x book value while the S&P 500 trades at its highest ever multiple of 5.22x book value. This signals that more attractive valuations are at the lower end of the capital markets, supporting the fund's SMID cap value focus. |
Valuation Book Value Multiples Undervalued Discount | |
Data CentersCrypto mining facilities share key inputs with hyperscaler data center operations including high-performance computing infrastructure and access to energy. Bitcoin miners are converting capacity to serve hyperscalers like Amazon Web Services, Microsoft Azure, and Google Cloud, generating significantly higher margins. |
Hyperscalers HPC AI Infrastructure Cloud Computing Capacity | |
CryptoBitcoin was up approximately 130% in 2024 with an incoming presidential administration favorable to cryptocurrency. However, many Bitcoin mining companies underperformed due to management issues and failure to capitalize on data center conversion opportunities. |
Bitcoin Mining Cryptocurrency Digital Assets Blockchain |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 14, 2026 | Fund Letters | Ken Squire | 6361 JP | Ebara Corporation | Industrials | Semiconductor Equipment | Bull | New York Stock Exchange | Activism, capital allocation, Cmp, Margins, semiconductors | Login |
| Jan 14, 2026 | Fund Letters | Ken Squire | 9503 JP | The Kansai Electric Power Company | Utilities | Electric Utilities | Bull | New York Stock Exchange | Activism, capital returns, Nuclear, Real Estate, utilities | Login |
| Jan 14, 2026 | Fund Letters | Ken Squire | ITGR | Integer Holdings Corporation | Health Care | Medical Devices | Bull | New York Stock Exchange | Activism, CDMO, Medical devices, Takeout, valuation | Login |
| Jan 14, 2026 | Fund Letters | Ken Squire | FUN | Six Flags Entertainment Corporation | Consumer Discretionary | Leisure Facilities | Bull | New York Stock Exchange | Activism, Leisure, Operations, Real Estate, turnaround | Login |
| Jan 14, 2026 | Fund Letters | Ken Squire | WEX | WEX Inc. | Information Technology | Transaction & Payment Processing Services | Bull | New York Stock Exchange | Activism, Governance, Margins, Payments, spinoff | Login |
| Oct 27, 2025 | Fund Letters | Ken Squire | PFGC | Performance Food Group Co. | Consumer Staples | Food Distributors | Bull | NYSE | Activism, antitrust, consolidation, Distribution, synergies | Login |
| Oct 27, 2025 | Fund Letters | Ken Squire | TRIP | TripAdvisor, Inc. | Consumer Discretionary | Interactive Media & Services | Bull | NASDAQ | AI, Governance, Platforms, Travel, valuation | Login |
| Oct 27, 2025 | Fund Letters | Ken Squire | VSAT | Viasat, Inc. | Information Technology | Communications Equipment | Bull | NASDAQ | Defense, growth, Satellites, Spin-offs, valuation | Login |
| Oct 27, 2025 | Fund Letters | Ken Squire | WK | Workiva Inc. | Information Technology | Application Software | Bull | NYSE | Activism, buyout, Governance, profitability, SaaS | Login |
| TICKER | COMMENTARY |
|---|---|
| EBCOY | This is a Japanese activist campaign by Third Point. Ebara Corporation was founded over 100 years ago and established its roots as an industrial manufacturer of pumps, compressors, chillers, turbines, and related equipment. However, over the last several decades, Ebara has entered another business: Precision Equipment, quietly becoming a semiconductor capital equipment powerhouse that is high-growth and contributes approximately one-third of the Company's revenue and just over one-half of its operating income. Despite this, Ebara is still viewed as an industrial Company, trading closer to its legacy Fluid Machinery business at 20x P/E versus 30x for its semiconductor capital equipment peers. |
| FUN | This is a US activist campaign by JANA Partners and Sachem Head Capital Management. Six Flags Entertainment is a regional amusement-resort operator with approximately 27 amusement parks, 15 water parks and nine resort properties across 17 states in the United States, Canada and Mexico. However, this arrangement has not really gone as planned. In Q2, Six Flags faced severe weather conditions during their typical peak May to June season, which resulted in substantial EBITDA and attendance misses. This sent Six Flags' share price down over 58% from the completion of the Cedar Fair merger to the day prior to JANA's announcement. |
| ITGR | Integer Holdings Corporation (ITGR), which specializes in the design, development, and production of medical technologies and components. In late October, Integer's stock sank more than 30% after the company significantly lowered its outlook for growth and margin expansion in 2026, as several products experienced slower market adoption than was expected. But management expects these headwinds to be short-lived, with a robust portfolio of higher growth and margin products coming to market, which should allow the company to get back on track. The company still expects to outgrow its industry peers by 2% while growing earnings before interest and taxes (EBIT) at twice the rate of sales. Even better, the company announced a $200 million stock repurchase authorization after the selloff, increasing our conviction that the shares are materially undervalued. This confidence drove us to increase our exposure to Integer in the quarter. |
| KAEPY | This is a Japanese activist campaign by Elliott Investment Management. Kansai Electric Power is a diversified utility based in Osaka, providing electrical power primarily to the Kansai region of Japan. It is Japan's second-largest electric power utility, trailing only Tokyo Electric Power Company. Notably, it is also Japan's top nuclear power operator with 6,580 MW of installed capacity from which 48% of its electrical output was derived in FY25. Despite these favorable characteristics, KEPCO has underperformed TEPCO over the past 1- and 5-year periods and was trading at 0.75x price-to-book prior to the announcement of Elliott taking a position in the Company. |
| WEX | This is a US activist campaign by Impactive Capital. WEX is a diversified payments company with three high-quality, market-leading segments - Mobility, Corporate Payments, and Benefits - each characterized by strong competitive moats, recurring revenue, dominant market share, and long-standing customer relationships. Despite these strengths, WEX trades at a deeply discounted valuation of ~9.2x NTM P/E versus its historical average and peers. Impactive Capital attributes this valuation gap to four core issues: poor capital allocation, empire building via non-core acquisitions, operational under-earning, and weak governance and misaligned incentives. |
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