Elliott’s AI Target Is an Omen to Stagnant Boards: Chris Hughes

Two of the best-known shareholder activists — Elliott Investment Management and Cevian Capital — are targeting companies with complex structures and second-rate governance. But even soft targets can be hard work.

The art of activism is to find a company that’s lost its way but has a good business at its core. The stock’s weak valuation may be a symptom of poor operating performance, which is in turn explained by the challenges of managing a conglomerate structure. Idiosyncratic governance is often a major concurrent factor. The board sets strategy, after all.

Take Elliott’s latest target, Hewlett Packard Enterprise Co., the tech ...