According to a news release from H Team Capital, LLC, the fund’s primary investment objective will be to achieve capital appreciation by acting as a catalyst for positive change in companies where management and shareholder interests are not aligned, and by demanding greater management accountability.
When necessary, H Team Capital said the fund would exercise its shareholder rights including engaging in proxy contests to replace management or board members.
As yet unnamed, the fund also plans to short stock of companies where it appears change is unlikely or where management is running the company into the ground or is unresponsive to shareholder interests. The fund may also work with other shareholders or pursue legal remedies to improve corporate governance. A registration statement relating to the above has been filed with the SEC but has not yet become effective.
Howard Horowitz, who last month formed H Team Capital LLC to serve as the fund’s investment adviser, is a former merger arbitrage research manager at American Securities BD Co. and Lipper & Co. He began his career as a corporate litigator at Strook, Strook & Lavan after earning his law degree from University of Pennsylvania. He later worked in the merger arbitrage departments at Lipper & Co from 1994 to 2002 and at American Securities BD, a job he left two months ago, according to CBSMarketWatch.