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Scopia Capital Management LP: Activist Profile

Scopia Capital Management LP ("Scopia") is an institutional alternative asset management firm based in New York City, managing $2 billion in assets. Founded in 2001 by Matt Sirovich and Jeremy Mindich, the firm employs a fundamentals-based, value-driven investment approach across two strategies: a long-short equity strategy managed with the discipline of market neutrality and a long-only equity strategy. The firm has been registered as an SEC Registered Investment Adviser since 2003.


Matthew I. Sirovich

Matthew Sirovich, a 1987 Brown graduate, is the co-founder and managing partner of Scopia Capital Management LP. Before founding Scopia in 2001, he was a managing director at DLJ Merchant Banking, overseeing investments across various industries. Earlier in his career, he worked as a financial manager for a camera firm in Hong Kong and as an analyst at Drexel Burnham Lambert. At Brown, Sirovich holds leadership roles on several committees and serves on the boards of BRC and Shining Hope for Communities. He earned an M.B.A. from Harvard Business School.


Jeremy Mindich

Jeremy is the co-founder and managing partner of Scopia Capital, a hedge fund management firm. Before transitioning to finance, he worked as a freelance journalist, contributing to publications such as the Boston Globe, Chicago Tribune, Christian Science Monitor, SF Weekly, and the Village Voice. Since 2007, he has been active in impact investing, providing seed funding to start-ups. Jeremy is also the owner and general manager of Huguenot Street Farm, which focuses on sustainable agriculture and technology innovation. He holds an M.P.A. from the Harvard Kennedy School and a B.A. from Wesleyan University. Jeremy serves as the chair of the SHOFCO board.


Letters & Presentations


Active 13D Positions

Stock

Company name

Sector

% of Portfolio

Link

HLIT

Harmonic Inc

Information Technology

6.6%

Link


Past Activist

Acorda Therapeutics Inc. (ACOR)

Scopia Capital disclosed a 16.5% stake in the company on August 7, 2017, urging the Board to review all strategic alternatives, including a potential sale, while highlighting risks of continuing as an independent entity. It increased its stake to 18.2% by August 31, 2017, and entered into an agreement on February 27, 2018, allowing Scopia to appoint two directors to the Board post-2018 Annual Meeting until January 1, 2019. Subsequently, Scopia reduced its stake to 12.4% on December 13, 2018, 11.3% on January 8, 2019, and 10.1% on January 23, 2019.


Forest City Realty Trust, Inc. (FCE)

In August 2016, Scopia Capital (7.4%) urged Forest City Realty Trust to eliminate its dual-class stock structure, which the Board proposed in December 2016 and shareholders approved in June 2017. Scopia increased its stake to 9.8% in February 2017. By March 2018, Forest City entered agreements with Starboard Value (3.0%), Scopia (8.3%), and RMS to reconstitute the Board, appointing independent directors and concluding its strategic alternatives review, opting to remain standalone. In July 2018, Brookfield Asset Management agreed to acquire Forest City for $11.4 billion, supported by Scopia and Starboard via merger agreements, despite opposition from co-Chairman emeritus Albert Ratner, who criticized the deal's price and timing. Shareholders approved the merger on November 15, 2018, and Brookfield completed the acquisition on December 7, 2018.


Itron Inc (ITRI)

On September 21, 2015, Coppersmith Capital and Scopia Capital disclosed a 6.2% stake in the company, advocating for operational rationalization and a review of strategic alternatives to enhance shareholder value. By December 9, 2015, the company entered a cooperation agreement with the firms (holding 7.5%), adding two Coppersmith candidates to the Board, who later joined Scopia Capital. Scopia progressively increased its stake, reaching 12.5% by March 2019, before systematically reducing it to 4.6% by January 7, 2020.


Verra Mobility Corporation (VRRM)

On February 3, 2022, Scopia Capital Management (5%) began engaging with the Board and management to explore opportunities to enhance shareholder value. On July 14, 2022, Scopia (5.3%) sent a letter praising the company’s market positioning and strategic objectives but expressed frustration with the stock's performance and undervaluation, suggesting a potential strategic review process. Scopia highlighted that, using a 20x peer average multiple, the implied share price could exceed $25, offering over 60% upside from current levels.


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