Woman-led activist hedge fund scores victory at AstroNova

AstroNova

04/04/2018 22:51

By Liana B. Baker
    April 4 (Reuters) - Ides Capital, one of only two U.S.
activist hedge funds run by a woman, was partly behind the
appointment of a female independent director this week at U.S.
industrial technology company AstroNova Inc  ALOT.O , people
familiar with the matter said on Wednesday.
    AstroNova did not disclose the role of Ides when it
announced on Tuesday that it would add Stallergenes Greer Plc
 STAGR.PA  board director Yvonne Schlaeppi to its own board,
while two of its oldest directors by age, Graeme MacLetchie and
Everett Pizzuti, will retire from the board.
    Four of the company's six directors will now be independent.
    Ides Capital privately nominated a "diverse" slate of
directors to AstroNova's board last month, but it will likely
not pursue a proxy fight following the changes to the board this
week, the sources said, asking not to be named because the
discussions were private.
    The hedge fund also sent a letter to the company's board
last month urging AstroNova to improve its corporate governance
by adding independent and diverse board members and
strengthening its board succession plans.
    Ides will remain a shareholder and continue to push for
changes at the company, the sources said. The size of its stake
in AstroNova could not be learned.
    A representative for Ides declined to comment. AstroNova
could not be reached for comment.
    AstroNova shares closed 1 percent higher on Wednesday at
$16.10, giving the Rhode Island-based company a market
capitalization of $108.9 million. 
    Ides Capital, co-founded in 2015 by Dianne McKeever, a
former Barington Capital partner, is one of only three activist
hedge funds globally that is headed by a woman, according to
research firm Activist Insight. 
    Washington-based Cartica Capital, which focuses on emerging
markets investing, is the only woman-led activist firm, Activist
Insight said. 
    Ides Capital on its LinkedIn page describes itself as
seeking to "constructively engage with management teams and
corporate boards to improve corporate governance practices."
    Ides' most well known investment was in 2016 when it waged a
proxy fight with airplane wireless provider Boingo Wireless Inc
 WIFI.O . It settled after Boingo added three independent
directors to its board. 

 (Reporting by Liana B. Baker in New York
Editing by Leslie Adler)
 ((liana.baker@thomsonreuters.com; 6462234850 @lianabaker;
Reuters Messaging: liana.baker@thomsonreuters.com@reuters.net))