Broadening Investor Audience and Shareholder Base
Challenge
Client faced valuation discounts and limited investor engagement beyond a narrow peer group
Our client, a leading $2.5 billion market cap metal resources company, traded at a deep discount compared to peers with similar financial performance and wanted to broaden its shareholder base. The company consistently met with the same group of specialist investors, primarily due to the limited reach of investment banks into the generalist investor community. Declining AUM of specialist funds had turned our client into a "relative value" investment, benchmarked against a narrow peer group. Additionally, their strategy of attending industry-specific and retail investor conferences had not yielded the desired results.
Solution
Broadening the client's investor base through a sector-agnostic strategy and proactive approach to shareholder acquisition
We developed a comprehensive strategy to introduce the company to a broader range of investors. We defined and qualified new investor targets using a sector-agnostic approach based on a new comp. group of companies with similar financial metrics outside of our client’s sector. Our team conducted direct outreach to a curated selection of prospective generalist portfolio managers and lesser-known specialist investment managers. We arranged meetings with decision-makers, gathered detailed investor feedback, and continually refined our client’s messaging to resonate with an audience less familiar with their industry. A robust marketing pipeline was established to maintain ongoing dialogue and nurture investor relationships from initial interest to committed ownership.
Results
Stabilizing the client's share price and enhancing market position
Our strategic engagement yielded significant results for our client by introducing them to a broader audience of generalist investors. This shift resulted in strong buying from long-only investors, with 87% of shares bought by active, growth-oriented buyers. Notably, U.S. buyers constituted the majority, showcasing substantial interest from North American investors. This increased demand not only stabilized the client’s share price but also diversified and strengthened their shareholder base, offsetting selling pressures and enhancing the company’s market position.
74+
Meetings Arranged
5.0T
Equity AUM Represented
54%
Avg. Portfolio Turnover
78%
Of Meetings with Mutual Funds
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