Does the Pandemic Mean the End of Shareholder Activism?

In short, no.

But the pandemic is scrambling much of the activism approach for now. In the heat of a pandemic, campaigns may be viewed as too distracting or unseemly for public debut. A number of funds may close shop as they cope with concentrated, steep losses from the stock market rout.

The severe changes wrought by the current economic crisis nonetheless suggest that once the pandemic passes, activists will be agitating anew. Companies with diminished earnings and prospects will be facing a series of existential decisions -- upon which activists may opportunistically choose to impose their views.

Key points from Lazard's definitive shareholder activism analysis:

? March campaign initiation was the slowest since 2013 and capital deployed was the lowest March since 2016

? With M&A activity sinking to multi-year lows and corporations fighting to preserve liquidity, activists are losing arrows in their quiver

? Seeking to take positions in healthy companies battered by the virus-induced rout, some activist funds are reportedly raising fresh capital from investors

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