Hedge Fund: Elliott Management Ditches Stake in Hyundai Motors

January 23, 2020 | Hedge Funds, Investments, News
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South Korean media reported on the sale this morning

Hyundai Motor Group has shaken off activist hedge fund Elliott Management. According to South Korean media, Elliott Management ditched its stake in the auto giant at the end of 2019. The activist fund had previously attempted to secure board seats and pushed for large dividend payments.

The Korea Economic Daily said that Elliott was no longer a shareholder in any of the firms it targeted in the country. The fund had previously owned more than $1 billion in company stock in Hyundai Motor, Kia Motors, and Hyundai Mobis.

Elliott Sells its Hyundai Motors Stake

Hyundai Motor Group faced opposition from Elliott over its 2018 restructuring proposal. At the time, the activist fund argued that family members of the family-run conglomerate would benefit more than minority shareholders. However, last March, shareholders rejected Elliott’s plan to audit members, increase dividends, and appoint new board members.

“The dividend proposed by the shareholder (Elliott) may sound tempting, but in the long term, it is like a poisoned chalice or nothing but cutting open the belly of a goose with the golden eggs,” a Hyundai Motor shareholder said in March 2019.

The departure of Elliott will give the firm “more room to utilize capital,” according to an analyst at KTB Investment & Securities.

Recent: Hedge Funds: AQR Capital is Cutting Staff… “It’s Carnage”

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