Introduction
Sometimes, you can find companies working to provide value to shareholders without much success. In general, it takes time for the market to realize that a company has been working hard (buy backs, restructuring, dividends...). In this period, sometimes smart activist investors start proxy campaigns to elect new directors to the Board of Management as the strategy is not working. This is the right time to buy this business because you have a catalyst, the activist, and also a Board of Management trying to return value to shareholders. Everyone in the room is working for you.
In this article, I will assess performance of the investment bank FBR & Co. (NASDAQ:FBRC) ("FBR"), and the proxy campaign started by Voce Capital. You will see that I will not mention who is right about the current performance of the firm, but will only show that this is a huge opportunity for the shareholders.
