Marathon Partners Announces Its Reasons for Launching a Proxy Fight With e.l.f. Beauty
Leveraging its 5.2% stake in the company, activist investor Marathon Partners has opened a proxy fight with e.l.f. Beauty, Inc. (NYSE: ELF), attempting to seat three new directors on its board. The equity management firm issued a press release today laying out its case to stockholders, proclaiming "e.l.f.'s lack of discipline in managing overhead expenses has deprived shareholders of profit growth, and therefore, investment returns."
Marathon asserts e.l.f.'s total return between its Sept. 21, 2016 IPO and May 26, 2020 is a loss of 1.9%. It compares the company's performance to that of the S&P 500, which provided a 48.9% return over the same period, and the average return of "e.l.f. peers" Shiseido, L'Oreal, Estee Lauder, Revlon, and Coty, which it claims generated a 36.2% total return.
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Source Fool.com
