Crescendo Partners LP
Hedge Fund
About
Crescendo Partners is an activist investment firm founded in 1998 by Eric Rosenfeld and based in New York. The firm focuses on deep value activist investing in small and mid-cap companies in North America with particular emphasis on Canada. Rosenfeld previously ran the arbitrage department at Oppenheimer & Co. for 14 years. Crescendo has achieved exceptional returns, posting 154% in 2009 and gaining 22% from inception through that year. The firm has held board representation at over 20 companies. Rosenfeld serves on numerous boards including Aecon Group, Pangaea Logistics, and Algoma Steel. Crescendo favors Canada for its shareholder-friendly regulations, particularly the ability to requisition shareholder meetings with 5% ownership.
Investment Focus
Crescendo employs a deep value activist strategy targeting undervalued companies using screens for enterprise value/free cash flow, enterprise value/EBITDA, and liquidation value. The firm seeks at least 50% upside potential. When Crescendo becomes active, it typically acquires 5-20% stakes and pursues board seats to implement operational improvements and strategic changes. The firm maintains long-term holding periods and works constructively with management to unlock value.