Long Term Returns of Scott Ferguson’s 5 Activist Targets

In this article, we discuss long-term returns of Scott Ferguson’s 5 activist targets. If you want to see more stocks in this selection, check out Long Term Returns of Scott Ferguson’s Activist Targets.

5. Elanco Animal Health Incorporated (NYSE:ELAN) 

Activist Investment: 2020
Long Term Returns Since Ferguson’s Investment: -36%
S&P 500 Gain Since Ferguson’s Investment: 79%

Elanco Animal Health Incorporated (NYSE: ELAN) is a company focused on the development, manufacturing, and marketing of products for both pets and farm animals within the animal health industry. It also offers pet health disease prevention products such as pesticides and vaccines. Through his hedge fund, Sachem Head Capital, Ferguson took a $1.2 billion stake in the company in 2020.

With the investment, the activist investor started pushing for changes, insisting that the company was undervalued and an attractive investment. The hedge fund opened discussions with management to see ways of boosting sales and improving margins. Ferguson was consequently appointed to the company’s board when the company was under scrutiny for missteps, including its poorly timed acquisition of Bayer’s AGs animal health for $6.9 billion.

Ferguson stepped down from the board as he sought to focus on other commitments under Sachem Head. He stepped down while insisting Elanco Animal Health Incorporated (NYSE:ELAN) had succeeded in establishing the right plan to create shareholder value through sustained cost discipline and developing an innovation pipeline.