Becker Drapkin Throws Support Behind Fuel Systems Solutions (FSYS)’ Merger, Activist Glenn Welling Ups Stake In Medifast Inc (MED)

Moving on to another activist hedge fund, Engaged Capital, which was founded in 2012 by Glenn W. Welling in Newport, California. Prior to founding Engaged, Mr. Welling served as the Managing Director of Research at Relational Investors, another hedge fund, from June 2008 until October 2011. Like Becker Drapkin Management, Engaged Capital also uses value-focused strategies and primarily invests in small-cap companies. Some of the companies in which the fund has gone activist on include AeroVironment, Inc. (NASDAQ:AVAV) and Magnachip Semiconductor Corp (NYSE:MX). As of June 30, Engaged Capital’s U.S public equity portfolio was worth $173.82 million.

Medifast Inc (NYSE:MED) is a Maryland-based manufacturer of weight loss and other dietary products. In April, the company underwent a major Board overhaul under which eight members left the company’s Board, while the size of the Board was reduced to nine from 12. After this Board overhaul was announced, Michael C. MacDonald, the CEO of Medifast Inc (NYSE:MED) acknowledged that Engaged Capital played a major role in the transformation. Shares of the company plummeted significantly after it reported its second quarter results on August 5 and currently trade down by 17.36% year-to-date. After the latest quarterly results were released, Canaccord Genuity’s analysts reiterated their ‘Hold’ rating on the stock, with a $34 price target, which represents a potential 22.5% upside to the stock’s current price. Peter S. Park‘s Park West Asset Management initiated a stake in the company of 358,719 shares during the April-June period.

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