Schulte Roth & Zabel partner Ele Klein was featured in The Deal's article, "SEC Evaluation of Swap Disclosures Misguided," discussing the SEC's proposed derivatives disclosure rule and how it would impact activist funds.
According to the SEC, at most seven activist investors held gross positions of more than $300 million, a disclosure threshold of the rule, on any given day between 2021 and 2022.
Ele questioned this data explaining that very few activist funds are capable of taking $300 million positions, in common shares or derivatives, in publicly traded companies.
“Most activists can’t or won’t take that large a position,” he said. “And just because some activists are capable doesn’t mean that many of them actually would take such a large position at one target.”
Read the article.