The Deal Activist Investing Today: Lawndale's Shapiro on 'Problem' Boards
Jun 25, 2025
Andrew Shapiro, a seasoned activist investor and founder of Lawndale Capital Advisors, shares insights from his 32-year journey in driving corporate change. He recounts pivotal moments, including a campaign that shaped his investment strategy and key successes like achieving tenfold returns. Shapiro delves into corporate governance, revealing how transparent investor communication can mitigate risks from activist actions. He also highlights the complexities of investor engagements, using the proxy fight between Elliott Management and Phillips 66 as a key example.
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First Campaign Success
- Andrew Shapiro started his activist fund with just $188,000 under management investing in preferred stock of a distressed fertilizer company.
- He successfully blocked a coercive takeover and grew the preferred stock value tenfold within one year.
Value of Long Lockups
- Long multi-year lockups align activist funds with long-term strategic approaches.
- Short-term liquidity pressure often forces other activists into immediate sale demands.
Activist Vaccine Concept
- Advising companies early to strengthen boards and investor engagement can prevent activist attacks.
- Engaged, transparent companies with an investor mindset reduce risk and can resolve conflicts before escalation.