The activist hedge Fund Third Point has taken part in the Swiss Richemont high-profile group, which owns Cartier and Van Cleef & Arpels watches, according to people familiar with the matter.
A fund from the United States Artisan Partners, which has been a shareholder in Richemont for many years and owns about 1.2 percent, has been forcing the group to improve its operations, according to one source.
Third point and Artisan did not return requests for comment. Richemont, which will explain its results in the first half of Friday, declined to comment.
The Richemont human rights campaign must face the powerful chairman Johann Rupert, who has long paved the way and elected 26 managers. house who belong to the group. Although a South African businessman owns only 9.1 per cent of the capital, he or she manages 50 per cent of the voting rights under two-quarters.
Critics argue that Richemont did not compete with its competitors over a decade of growing growth in high-end companies run by Chinese consumers. Its market share has grown by 79 percent in the last five years, while that of LVMH and Hermes has quadrupled.
Investigators have also criticized the group’s failure to stop the loss of ecommerce unit Yoox Net-a-Porter, which has lost its market to new competitors such as Farfetch and failed to deliver on its long-term promises.
It is unknown at this time what he will do after leaving the post.
But a hedge fund funded by billionaire Investor Dan Loeb could have aggressive tactics, such as when it encouraged Nestlé to sell stocks in 2017 and as soon as it wanted. end of Royal Dutch Shell. It can also be pragmatic with its costs, as when it took price at Vivendi this year ahead of Universal Music Group but did not openly push that change.
Artisan is a long-term knowledge fund but has recently taken steps to strengthen some of its financial resources, such as public campaign climbed this year to remove Emmanuel Faber as Danone’s chief executive.
Richemont divisions did not perform well for LVMH and Hermès leaders last year as investors anxiety that her jewelry-based business will suffer more than others in the Covid-19 epidemic.
But the biggest players have it raptured back faster than expected from the crisis, he was greatly helped by Chinese buyers who still buy at home even though they can no longer go shopping in European businesses.
This has helped Richemont shares rise 48 percent this year, surpassing the 35 percent increase for LVMH and a 12 percent rise for Kering, the owner of Gucci, but a 63 percent drop for Hermès. Investigators say the Richemont meeting was set up by investors who bet they have a chance to change.
Third Point funding was first mentioned by the independent book Miss Tweed.