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Hermitage Effect
One of the cornerstones of our approach is to increase the value of our investments by improving corporate governance and shareholder transparency at our portfolio companies.
We believe that shareholder activism is a powerful force to improve corporate governance and prevent or stop possible shareholder value destruction by company management. Since its inception in 1996, Hermitage has launched several successful public campaigns, which helped to unlock the hidden value of its investments in corporates. The results of such campaigns were a subsequent appreciation of the companies' valuations, has been dubbed the “Hermitage Effect." In extreme cases, Hermitage has fought corporate management engaged in asset stripping, share dilution and other abuses of minority shareholders rights.
We believe that shareholder activism is a powerful force to improve corporate governance and prevent or stop possible shareholder value destruction by company management. Since its inception in 1996, Hermitage has launched several successful public campaigns, which helped to unlock the hidden value of its investments in corporates. The results of such campaigns were a subsequent appreciation of the companies' valuations, has been dubbed the “Hermitage Effect." In extreme cases, Hermitage has fought corporate management engaged in asset stripping, share dilution and other abuses of minority shareholders rights.
Related Links:
Harvard Business School Case Study: The Hermitage Fund: Media and Corporate Governance in Russia.
Stanford Business School Case Study: Gazprom and Hermitage Capital: Shareholder Activism in Russia.