Industry Investment Management Founded 2003 | Website www.knightvinke.com Type of business private | |
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Headquarters New York City, New York, United States Profiles | ||
Knight Vinke Asset Management is an American privately owned investment management firm that makes a business of investing in under-performing bluechip companies, then pushes for institutional changes in those companies which in turn increase the share value of the company, which then profits Knight Vinke.
Knight Vinke shot to fame in 2004 when it persuaded Royal Dutch Shell to abandon its dual British-Dutch corporate structure despite owning only 0.03% of its shares.
Operations
Knight Vinke recently reopened the debate about investment banking by publishing an open letter in the Financial Times calling on the Swiss bank UBS to review whether or not it should continue to own its wealth management business under the same roof as its investment bank. Signed by Eric Knight, the letter argued that the excessive risk within the UBS investment banking operations between 2007 and 2009 nearly destroyed the bank and a simplification of the group's structure would help the bank unlock its full value potential.
In February 2013, Darty appointed Eric Knight to the board following a profit warning. Knight Vinke, which has a 25% stake in Darty, said it was frustrated at the pace of change, and would exercise its right to join the board with immediate effect.
Knight Vinke has been an institutional investor in Eni for over 5 years and since 2009 has been calling for the state-controlled Italian oil and gas group to break itself up. It has argued that Eni's ownership of the gas pipeline operator Snam left both with the wrong capital structure; Eni was overgeared for an exploration and production company, while Snam, as a regulated utility, was undergeared.
Knight Vinke played an important role in derailing a major acquisition of VNU. In late 2007, it started to challenge the strategy and governance of HSBC. In June 2009, HSBC's largest shareholder, Legal & General Investment Management (LGIM), became the first major shareholder to offer public support for Eric Knight's activism, and urged HSBC to pay heed and answer questions.