<ul class="summary-list"><li>A <keyword id="1192755" type="PERSON" weightage="60" keywordseo="Nikola">Nikola</keyword> investor and board member is defending the startup against fraud accusations from a short-seller that have caused its stock to sink dramatically. </li><li><keyword id="2467738" type="PERSON" weightage="60" keywordseo="Jeffrey-Ubben">Jeffrey Ubben</keyword>, who founded the investment firm Value Act, says the startup went public too quickly. </li><li>The real story, he told <a href="https://www.bloomberg.com/news/articles/2020-09-15/nikola-director-ubben-says-startup-skeptics-too-focused-on-past?srnd=premium&amp;sref=LspfQlRvQlRv">Bloomberg</a> and the <a href="https://www.ft.com/content/e5aeb036-fc1a-49d2-970e-63b4879f1973">Financial Times</a>, is in Nikola's plans for <keyword id="169046" type="COMPANY" weightage="60" keywordseo="hydrogen">hydrogen</keyword> fuel infrastructure — not in past missteps. </li></ul> A member of Nikola's board of directors, early investor Jeffrey Ubben, is doing damage control after a wild week for the electric startup.In interviews with the <a href="https://www.ft.com/content/e5aeb036-fc1a-49d2-970e-63b4879f1973">Financial Times</a> and <a href="https://www.bloomberg.com/news/articles/2020-09-15/nikola-director-ubben-says-startup-skeptics-too-focused-on-past?srnd=premium&amp;sref=LspfQlRvQlRv">Bloomberg</a>, Ubben said he pressed the company to go public sooner than later. The choice to accelerate that June listing helped the company's market value to skyrocket, precipitating a slew of similar reverse mergers, but came with its own issues, Ubben said."We are doing something for the first time," he told Bloomberg. "I guess you're seeing how the sausage is made, and we went public way too early and it's my fault. I pushed Trevor to do it."In the months since Nikola entered its second, larger, and much more public phase of life, it seemed to cement itself as a power player in a crowded field. A <a href="https://www.businessinsider.com/gm-nikola-announce-2-billion-partnership-2020-9">non-cash deal worth some $2 billion with General Motors</a> helped <a href="https://markets.businessinsider.com/news/stocks/nikola-stock-price-gm-strikes-manufacturing-partnership-badger-general-motors-2020-9-1029569699">its market value surge even further</a> before a <a href="https://markets.businessinsider.com/news/stocks/nikola-stock-price-citron-hindenburg-allegations-investor-selling-short-report-2020-9-1029582414">damning report from a short-seller dampened the stock's gains.</a>In response to the numerous allegations of lies and fraud, Nikola has promised legal action, welcoming regulatory intervention. While it disputed most accusations, it also <a href="https://www.businessinsider.com/nikola-response-short-seller-hindenburg-admits-promo-truck-couldnt-drive-2020-9">admitted to some while disagreeing with the characterizations by Hindenburg Research.</a> Rolling a truck down a hill in order to film a commercial, for instance, wasn't fraud in Nikola's eyes because it never claimed the truck was operating under its own power.Ubben didn't directly address any specifics of the fight in either interview. However, he expressed frustration in a focus on past actions, instead of Nikola's vision for the future and its own growth."How can this be an intricate fraud if you have your three biggest suppliers in the board room working together as partners? I don't get why there's so much suspicion," Ubben told Bloomberg. "You think Bosch, CNH, Hanwha and now General Motors? They just rolled over without doing due diligence? No."Despite a bevy of truck offerings coming down the pipe, including a consumer-level truck that will eventually compete with the Ford F-150, Ubben says the real value of Nikola is in the hydrogen-fueling infrastructure it hopes the build."We are different from Tesla," Ubben told the Financial Times. "They are going to make their money on cars and trucks. That's a tough model. We will be selling fuel to all the other hydrogen vehicles. It is the end-game solution."Messaging, however, hasn't been the company's strong point, he said. That's something even Wall Street analysts have bristled at."It turns out our business model, to be a system integrator, is not well understood," Ubben continued to the FT. "And that is a problem."

'It's my fault': An early Nikola investor says the startup went public too soon as it grapples with accusations of fraud

<ul><li><keyword id="1192755" type="PERSON" weightage="60" keywordseo="Nikola">Nikola</keyword> surged as much as 24% on Thursday after board member Jeff Ubben defended the company on CNBC.</li><li>Scandals at Nikola over the past year have led to a 90% decline in the stock price since its peak at about $94.</li><li>Ubben said Nikola has its head down and is working towards its goals of launching an electric semi-truck.</li><li><a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestource=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest" target="_blank" rel="noopener">Sign up here for our daily newsletter, 10 Things Before the Opening Bell.</a></li></ul><hr />Nikola soared as much as 24% on Thursday after its board member Jeffrey Ubben defended the electric vehicle company in an interview with CNBC's David Faber.Ubben told CNBC's David Faber that despite the controversy over its founder and former chairman and ceo Trevor Milton, the company had its head down and is working towards achieving its goals.That scandal includes the company <a href="https://www.businessinsider.com/nikola-response-short-seller-hindenburg-admits-promo-truck-couldnt-drive-2020-9">rolling a prototype truck down a hill</a> in a promotional video, which led to <a href="https://www.businessinsider.com/gm-no-stake-nikola-deal-badger-electric-pickup-canceled-2020-11">General Motors pulling the plug on its planned $2 billion equity investment</a> in the company. Shares of Nikola have fallen as much as 90% since its peak at $93.99 last June. But Ubben said the company is on target with its timeline of launching its electric semi-truck sometime between 2022 and 2023. Ubben is managing partner of Inclusive Capital Partners. Ubben owns 4.8% of Nikola, <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/1731289/000119312521081397/d128833ds1.htm">according to SEC filings.</a>Nikola did seem to make some progress on Thursday, as <a href="https://nikolamotor.com/press_releases/nikola-energy-and-travelcenters-of-america-to-deploy-hydrogen-fueling-infrastructure-117">it announced a collaboration</a> with TravelCenters of America to install hydrogen fueling stations at two locations in California. The hydrogen fueling stations are expected by be commercially operational by the first quarter of 2023, and will serve as a potential roadmap for developing nationwide hydrogen fueling infrastructure with TravelCenters in the future. Comments from Ubben, who has sold Nikola shares in the past, come about one week before a sizable lock-up period expires for company insiders. In November, Nikola's board members, executive officers, and their affiliates voluntarily agreed to extend their original lock-up provisions through April 30, 2021. The lock-up expiration will allow 136.7 million Nikola shares to be sold, roughly doubling its current share float of 144 million shares.<div type="image" title="nikola chart.JPG" height="527" width="669" msid="82202655" hostid="261"></div>

Nikola jumps 24% as board member Jeffrey Ubben defends the EV maker following scandal-induced 90% collapse

Nikola, the electric-truck startup that found itself in a full-throated yelling match with a short-seller last Thursday, has been playing defense this week — and it's not clear if investors are completely convinced.After initially promising a tit-for-tat rebuttal <a href="https://twitter.com/mims/status/1304081904677904390?ref_src=twsrc%5Etfw">within the day</a>, the company, presumably on the advice of well-heeled counsel, released <a href="https://www.businessinsider.com/nikola-response-short-seller-hindenburg-admits-promo-truck-couldnt-drive-2020-9">a full response</a> on Monday to Hindenburg Research's <a href="https://hindenburgresearch.com/nikola/">allegations</a> of lies, deception, and outright fraud. For the most part, the company's response flatly denied most of the accusations against it — but many require a little nuance.Perhaps most notably, the company would like you to know that its truck did, in fact, simply roll down a hill for a video shoot. However, the video was not a lie, Nikola said, because it was shot by a third party and never insinuated the truck was actually moving on its own power.As for the other allegations, even Wall Street's top analysts have brushed off most concerns in the Hindenburg allegations, given that they had to do with things that occurred before Nikola's full launch or at founder Trevor Milton's previous companies. Still, investors haven't been fully won over, and the stock is at its lowest levels since July — well before Nikola's <a href="https://www.businessinsider.com/gm-nikola-announce-2-billion-partnership-2020-9">$2 billion deal</a> with General Motors deal was announced.Board member and early investor Jeffrey Ubben was <a href="https://www.businessinsider.com/nikola-board-member-my-fault-company-went-public-too-soon-2020-9">also on the defense this week</a>, saying he pushed Trevor &amp; Co. to go public too soon. The real story here, he told Bloomberg and the Financial Times, is Nikola's plans for hydrogen sales — not the trucks that have made up its only announcements and products so far.Read on below for more news from this week, including new data that could be good news for weary travelers, Uber's continued struggles in London and Arizona, cruise lines, U-Haul, and more. And if you haven't yet, <a href="http://newsletter.businessinsider.com/join/4np/shiftinggears">sign up here to get this newsletter in your inbox every week</a>.<h2>Airline workers have lower rates of COVID-19 than the general population — and airline CEOs say it's proof that flying is safe</h2><a href="https://www.businessinsider.com/airline-workers-covid-rates-is-flying-safe-2020-9">Some (perhaps surprising) data from airline workers</a> shows that flight attendants and other airline employees have had a lower incidence of COVID-19 than the general population. Airline executives and union leaders say that's a sign that the safety measures airlines are taking on airplanes are having an effect.Data from the Association of Flight Attendants shows that a little over 1,000 flight attendants nationwide have tested positive for COVID-19, or a 0.8% incidence rate, if we count it from the roughly 122,000 US flight attendants as of the end of 2019. The number includes the association's members, as well as members of other unions and nonunionized workers.There had been a total of 6.6 million confirmed cases in the US as of Thursday, according to data from <a href="https://www.nytimes.com/interactive/2020/us/coronavirus-us-cases.html">The New York Times</a>, putting national incidence rates at about 2%.<h2>Uber's struggles continue in Arizona and London</h2>Two long-running Uber storylines are drawing nearer to an end.In Arizona, the driver of a self-driving car that struck and killed a pedestrian in 2018 <a href="https://www.businessinsider.com/fatal-uber-self-driving-autonomous-crash-driver-charged-negligent-homicide-2020-9">was charged with negligent homicide.</a> Rafaela Vasquez, who was found to have been watching a video on her phone at the time, pleaded not guilty. The case is likely to set many precedents for our driverless future, since it is likely the first case of a death caused by self-driving vehicles. Uber notably was already chided by the <a href="https://www.ntsb.gov/investigations/AccidentReports/Reports/HAR1903.pdf">National Transportation Safety Board</a> last year for an "inadequate safety culture."And across the pond, the company's fighting for its life in London. This week, it <a href="https://www.businessinsider.com/uber-handing-passenger-driver-data-to-the-british-police-report-2020-9">agreed to hand over private data on drivers and riders to police</a> as part of efforts to keep its license in the city. Uber's eventual fate there is set to be decided on September 28. <h2>Everything else:</h2><ul><li><a href="https://www.businessinsider.com/delta-furloughs-pilots-flight-attendants-coronavirus-2020-9">Delta will avoid involuntary furloughs for most frontline workers when federal aid expires, but pilot layoffs remain likely</a></li><li><a href="https://www.businessinsider.com/uhaul-budget-prices-california-los-angeles-san-francisco-moving-trucks-2020-9">Renting a U-Haul to move out of California can be 4 times more expensive than moving in due to high demand</a></li><li><a href="https://www.businessinsider.com/gm-ceo-stands-by-nikola-deal-short-seller-fight-intensifies-2020-9">General Motors CEO says the company stands by its Nikola deal as the startup's short-seller fight intensifies</a></li><li><a href="https://www.businessinsider.com/2020-kia-telluride-review-price-specs-suv-horsepower-three-row-2020-9">REVIEW: The $47,000 Kia Telluride is perfect for buyers craving a luxurious 3-row SUV without the luxury price tag</a></li><li><a href="https://www.businessinsider.com/canoo-replace-car-loans-netflix-style-subscriptions-2020-9">The CEO of Canoo thinks the electric-vehicle startup has the key to fixing the problems Mercedes-Benz and Cadillac have faced with Netflix-style car subscriptions</a></li><li><a href="https://www.businessinsider.com/nissan-z-proto-prototype-debut-concept-prototype-new-specs-400z-2020-9">Nissan just showed off a stunning design prototype for the future of its most iconic sports car — check out the Z Proto</a></li><li><a href="https://www.businessinsider.com/boeing-737-max-report-faa-flaws-oversight-2020-9">A blistering House report slams Boeing and the FAA over 'serious flaws and missteps' that led to two deadly 737 Max crashes</a></li><li><a href="https://www.businessinsider.com/southwest-block-middle-seat-november-thanksgiving-coronavirus-air-travel-2020-9">Southwest will leave its middle seats open through at least November, offering social distance to anxious Thanksgiving travelers</a></li><li><a href="https://www.businessinsider.com/amazon-truck-drivers-prime-transportation-strategy-2020-9">Amazon is scrambling to find truck drivers, and now forced to turn to the big trucking firms it has previously shunned</a></li><li><a href="https://www.businessinsider.com/private-jet-execs-reveal-how-keeping-long-range-jets-flying-2020-8">Private jet execs reveal how they're navigating international travel restrictions to ferry the wealthy using long-range jets</a></li></ul>

Insider Transportation: Nikola's rebuttal, Uber's fight for its life, and safety data for wary air travelers

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/56d46a4d2e5265b7008ba2d2-1228-921/screen shot 2016-02-29 at 10.56.20 am.png" alt="Jeffrey Ubben" data-mce-source="YouTube/ Kellogg School of Management" data-link="https://www.youtube.com/watch?v=pYspOCoxUXk" /><a href="https://www.youtube.com/watch?v=pYspOCoxUXk">YouTube/ Kellogg School of Management</a>Jeff Ubben.</div></div></div>Hedge fund manager Jeffrey Ubben, the cofounder and CEO of $19 billion investment fund ValueAct Capital, has been investing in companies where there's an opportunity to cut out the so-called middlemen.Also known as intermediaries, middlemen help facilitate transactions between companies and customers. They can be agents, brokers, or wholesalers.These go-betweens can in some cases be cut out of the equation, or disintermediated. Companies can save the money they otherwise would have paid out to those middlemen if they find a way to do business without them. This is a key trend that ValueAct has picked up on.ValueAct takes a bottom-up fundamental-value approach to investing. The fund spends a lot of time on the details and it describes itself as "business model-centric, not industry-centric.""This is evidenced by the amount of time we spend analyzing business models, including how companies produce goods and services, how they interact with customers, how they get paid," Ubben wrote in a letter to investors dated February 4. "These dynamics change slowly, but their impacts are profound on the companies' returns on capital, can very often overwhelm macro-economic cycles and be more long-lasting in effect."From the letter (emphasis added):We are pleased to see structurally improving business models at most of our portfolio companies. One common theme we have explicitly chosen to invest in across multiple industries is direct customer engagement and disintermediation. Said another way, we look for opportunities where a company can remove intermediaries that distribute, resell, install, service and maintain their products. In the case of a company with diffused customers and limited internal resources, the "middlemen" can be extremely helpful. However, this help comes with a cost as the middlemen need to get paid, extracting economics from the industry. They also own the customer relationships, often leaving the supplier in the dark as to the customers' identities, locations, behaviors, preferences and level of activity. In the case of intangible goods, such as software or media, this loss of control can lead to widespread piracy. A direct relationship with the customer can enable more specific market intelligence, fostering faster, iterative product development cycles that work to further align interests between companies and their customers.Cloud computing has enabled Adobe Systems Incorporated ("Adobe") and Microsoft to build two of the largest software as a service ("SaaS") businesses in the world with Creative Cloud and Office 365. Importantly, with each, a direct connection with the end user has been established allowing a real-time study of usage patterns, near-continuous product updates and a host of other features. This was not possible when their software was indirectly distributed and ran on the island of a PC or a corporate data center. Today, files can sync seamlessly in the cloud across devices and offices. The cloud processing power also allows for heavy duty computation, including de-blurring photos and videos, 3D simulations, fast search queries across disparate data sources and almost limitless data storage. Adobe and Microsoft are now benefiting from the information that comes with having direct insight into what the customer wants, empowering them to continue to improve their products, giving the customer more and then getting paid more as a result.ValueAct fell 1.3% in the fourth quarter to end 2015 down 2.2%. The average hedge fund fell 2.76% in 2015, <a href="https://www.hedgefundresearch.com/hfrx_reg/index.php?fuse=login_bd">according to data from Hedge Fund Research.</a>Since ValueAct's inception in 2000, it has produced annualized net returns of 15.5%. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/sam-hodges-idea-factory-2016-2">Funding Circle's Sam Hodges: 'Everyone has a plan, until you get hit in the teeth'</a></h3> <div> <div> <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="95cWdtMDE6bm4D4LvzzchGeNxu8ypxa5" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> <script> if (typeof RunFunctions === 'undefined') { var RunFunctions = []; } RunFunctions.push(function() { var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', '95cWdtMDE6bm4D4LvzzchGeNxu8ypxa5',{ autoplay: 'false' }); }); </script> <noscript><div>Please enable Javascript to watch this video</div></noscript></div> </div> <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script> </div>

A $19 billion hedge fund has put one theme at the heart of its investment strategy ? and it should strike fear into 'middlemen'

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/562e3ec7bd86ef16008c4ae8-708-531/screen shot 2015-10-26 at 10.53.45 am.png" alt="Mason Morfit" data-mce-source="Channel 9" />Channel 9Mason Morfit, president of ValueAct Capital, is back on Valeant's board.</div></div></div>Valeant Pharmaceuticals <a href="http://www.prnewswire.com/news-releases/valeant-pharmaceuticals-announces-the-addition-of-g-mason-morfit-to-its-board-of-directors-300165857.html">has added</a> an activist hedge fund executive to its board after its stock tanked following a short-seller's research report.The Canadian drug company's share price has gone on a wild ride over the last week, following allegations by Citron Research. The company hosted an all-hands call on Monday morning to <a href="http://www.businessinsider.com/valeant-investor-call-philidor-pharmacy">address the allegations</a>. It also announced Monday that G. Mason Morfit, the president of ValueAct Capital, is rejoining Valeant's board, effective immediately.Morfit previously served on the board from May 2007 to May 2014. He was <a href="http://www.wsj.com/articles/SB125106931496352353">also chairman</a> of Valeant's board.Morfit <a href="http://www.wsj.com/articles/SB125106931496352353">served on the board</a> when Valeant recruited J. Michael Pearson from McKinsey to come on as its CEO."I am pleased to welcome Mason back to the Valeant Board of Directors," Pearson said in a statement."Although Mason has not officially been a part of the Valeant Board for more than a year, I have continued to value his vision and guidance, and I believe his insights will be invaluable during this time."Another ValueAct partner, Robert Hale, <a href="http://www.valeant.com/about/board-of-directors">is also on the Canadian pharmaceutical company's board</a>. Hale <a href="http://ir.valeant.com/investor-relations/news-releases/news-release-details/2015/Valeant-Pharmaceuticals-Announces-The-Addition-Of-D-Robert-Hale-To-Its-Board-Of-Directors/default.aspx">replaced the seat</a> of ValueAct CEO Jeffrey Ubben in late August. Ubben had <a href="http://ir.valeant.com/investor-relations/news-releases/news-release-details/2014/Jeffrey-W-Ubben-CEO-Of-ValueAct-Capital-Appointed-To-The-Board-Of-Valeant-Pharmaceuticals/default.aspx">served on the board as its chairman.</a><h2>A long-time winner for ValueAct</h2>Over the years, Valeant Pharmaceuticals had been a huge winner for ValueAct.ValueAct, which is more long-term than your typical activist, first purchased shares in Valeant in 2006 in a price range of about $11, <a href="http://blogs.wsj.com/moneybeat/2015/06/16/valueacts-2100-return-on-valeant/">according to The Wall Street Journal</a>. ValueAct is currently the second-largest hedge fund shareholder of Valeant. It last held 14.9 million shares, or a 4.4% stake, according to the lastest available data. Valeant remains ValueAct's largest stock position.During the second quarter, the fund sold about 4.49 million shares. The<a href="http://blogs.wsj.com/moneybeat/2015/06/16/valueacts-2100-return-on-valeant/">Wall Street Journal</a> reported that much of that stake (4.2 million shares) was sold in a range of $219 and $230.60 per share. That works out to be an estimated profit of at least $913 million, according to our calculations. In the last week though, Valeant's shares have collapsed more than 36% after California-based Citron Research <a href="http://www.businessinsider.com/valeant-shares-crash-october-21-2015-10">published a report</a> that asked if Valeant was operating as an Enron-like fraud.Valeant's share price was last down 1.95% at about $113.90.Here's a five-day chart: <div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/562e41859dd7cc15008c4b5b-1090-449/screen shot 2015-10-26 at 11.06.17 am.png" alt="vrx" data-mce-source="Google Finance" />Google Finance</div></div></div> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/time-saving-formatting-shortcuts-excel-spreadsheets-data-2015-10">6 shortcuts in Excel that will save you a ton of time</a></h3> <div> <div> <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="s2eWVycTpB8W04mVKP6-rNgKfb8IFiF_" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> <script> if (typeof RunFunctions === 'undefined') { var RunFunctions = []; } RunFunctions.push(function() { var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 's2eWVycTpB8W04mVKP6-rNgKfb8IFiF_',{ autoplay: 'false' }); }); </script> <noscript><div>Please enable Javascript to watch this video</div></noscript></div> </div> <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script> </div>

Valeant is calling in a hedge fund executive at its most testing time

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/56d5de196e97c629008baa49-1058-793/screen shot 2015-07-22 at 9.28.04 am.png" alt="Spectre Christoph Waltz" data-mce-source="Sony Pictures" />Sony Pictures</div></div></div>Finance Insider is Business Insider's midday summary of the top stories of the past 24 hours.To sign up, scroll to the bottom of this page and click "Get updates in your inbox," or <a href="http://www.businessinsider.com/newsletter/prime-finance?IR=T&amp;utm_source=businessinsider&amp;utm_medium=finance_insider&amp;utm_term=finance_insider_leadgen_text_link&amp;utm_content=leadgen_text_link&amp;utm_campaign=finance_insider_leadgen_link" target="_blank">click here.</a>The two stocks that have been the source of so much pain on Wall Street are in the news again. Valeant is <a href="http://www.businessinsider.com/valeant-continues-fall-as-bad-news-emerges-2016-3">having another rough day</a>, with the stock down another 6% on a slow drip-feed of bad news. This <a href="http://www.businessinsider.com/hedge-funds-in-valeant-2016-2">after a sharp drop on Monday. </a>The stock is down around 70% over the past 12 months. SunEdison is having an even worse time of it, with the stock down 19% after the company <a href="http://www.businessinsider.com/sunedison-delaying-its-10-k-2016-3">said that it would delay its 10-K filing so it can finalize its financial statements. </a><a href="http://www.businessinsider.com/sunedison-delaying-its-10-k-2016-3"> </a>That news follows hedge fund billionaire David Tepper's decision to accept a <a href="http://www.businessinsider.com/appaloosa-pursue-expedited-sunedison-trial-2016-2">Delaware court's offer to expedite its lawsuit against the company.</a>The stock is now down 93% over the past 12 months. In other news, three <a href="http://www.businessinsider.com/battle-of-the-boutiques-3-small-firms-are-at-the-center-of-a-transatlantic-bidding-war-2016-3">small firms are at the center of a transatlantic bidding war</a>, two of the best-known <a href="http://www.businessinsider.com/sallie-krawcheck-and-blythe-masters-2016-3">women on Wall Street are joining forces</a>, and Larry Summers is not <a href="http://www.businessinsider.com/larry-summers-on-donald-trump-2016-3">keen on the idea of Donald Trump as president.</a>Here is the memo Jes Staley, <a href="http://www.businessinsider.com/barclays-internal-memo-heres-ceo-jes-staleys-message-to-staff-2016-3">the CEO of Barclays, sent to staff earlier today. </a>And here are the <a href="http://www.businessinsider.com/wall-street-spring-reading-list-2016-2">18 books Wall Street will be reading this spring.</a>Here are the top Wall Street headlines at midday: <a href="http://www.businessinsider.com/goldman-sachs-gregg-lemkau-on-the-chinese-deal-spree-2016-2">China has been on a buying spree, and it feels like it is 'driven from the top'</a> - Chinese companies have been buying up foreign businesses at an impressive rate in 2016, and everyone wants to know what's going on.<a href="http://www.businessinsider.com/financial-adviser-misconduct-study-2016-3">The Wolves of Wall Street are everywhere</a> - Academics crunched the data on 1.2 million current and former financial advisers in the period from 2005 to 2015, and found that 7.28% have been disciplined for misconduct and/or fraud.<a href="http://www.businessinsider.com/us-auto-sales-february-2016-2016-3">US auto sales are crushing expectations </a>- The big carmakers are reporting their US sales numbers for February. <a href="http://www.businessinsider.com/jeff-ubben-on-disintermediation-2016-2">A $19 billion hedge fund has put one theme at the heart of its investment strategy</a> - Hedge fund manager Jeffrey Ubben, the cofounder and CEO of investment fund ValueAct Capital, has been investing in companies where there's an opportunity to cut out the so-called middlemen.<a href="http://www.businessinsider.com/falcone-speaks-at-alpha-hedge-east-2016-2">Former hedge fund manager Phil Falcone spoke in public for the first time in years, and slammed the industry</a> - Former hedge fund manager Philip Falcone said that there's "an awful lot of mediocrity" these days in the hedge fund space.<a href="http://www.businessinsider.com/coatues-tech-investing-2016-2">Bubbles, chasms and 'dreaming the dream' ? a top tech investor reveals its unconventional approach to picking winners</a> - Coatue Management, the $10 billion long/short equity hedge fund led by "Tiger Cub" Philippe Laffont, is one of the most prolific investors in technology companies.<a href="http://www.businessinsider.com/hedge-funds-in-valeant-2016-2">It's another hedge fund horror show as Valeant gets slaughtered</a> - Valeant Pharmaceuticals got hammered on Monday, spelling bad news for a bunch of hedge funds.

The two stocks that have been the source of so much pain on Wall Street are tanking again

<img alt="ackman carl icahn bless IT" data-mce-caption="Bill Ackman and Carl Icahn" data-mce-source="AP/Amanda Macias/Business Insider" src="https://static-ssl.businessinsider.com/image/55f2f14369bedd0539b7d879-890-573/screen shot 2015-09-11 at 11.10.39 am.png" />

	
		
			AP/Amanda Macias/Business Insider
		
			Bill Ackman and Carl Icahn
	
	

Carl Icahn and Bill Ackman might soon need some translators on staff. 
 
Both investors are activists, who take small stakes in companies and then agitate for changes that ought to boost share prices. 
 
It's a tremendously popular strategy, and activist funds have seen <a href="http://www.businessinsider.com/wall-street-couldnt-be-happier-about-activist-investing-2015-8">assets under management balloon over the past five years</a>. But that growth means the fund managers are bumping into one another as they hunt for targets.


	"In the US market where activism is an accepted part of the investing ecosystem, activists are running the same screens and identifying the same targets," Chris Young, head of Credit Suisse's activism defense team, told Business Insider.

	"They are not running into one another in a coordinated wolfpack fashion, but by accident. You get that crowded environment." 
	 
	One recent example is Mondelez, the maker of Oreo cookies. Ackman <a href="http://www.businessinsider.com/wsj-reports-bill-ackman-takes-mondelez-stake-2015-8">recently unveiled a big position</a> in the company, joining fellow activist Nelson Peltz. Bank of New York Mellon also found itself squeezed by two activists in quick succession, with Peltz's Trian and activist fund Marcato Capital Management both agitating for change. 
	 
	One solution for activists looking for a unique target: To start looking abroad for new opportunities.

	"That in turn, logic would dictate, means activists are going to look outside that crowded market, and allocate dry powder to other jursidictions," Young said.

	The numbers show what's already underway: In 2015 so far, activists have targeted foreign companies 31 times - up from 17 in all of 2014 and a record high, according to FactSet's Activist Insight. The number of international activist campaigns has risen every year from 2010 onwards, the data show.

	<img class="gwt-Image" src="/photo/48967911.cms" />

	
		
			
				Business Insider graphics from FactSet Activist Insight
			
				Activist investing overseas is up over the last five years - but it took off in 2015.
		
		
			That includes a number of campaigns elsewhere in the Americas, with activists targeting companies listed in places like Bermuda and Canada. But it also includes a number of European targets.
	


	John Paulson's hedge fund has tried to elbow Dutch drugmaker Mylan into the arms of a bidder. Nelson Peltz started pushing UK-based Pentair to start buying out rivals. Jeffrey Ubben's ValueAct Capital is invested in Rolls-Royce Holding in the UK and have met with chief executive Warren East. 

	Dan Loeb has pursued campaigns in Japan, recently announcing a new investment in Suzuki, while Elliott Management this year fought a<a href="http://www.businessinsider.com/elliott-management-loses-activist-fight-at-samsung-2015-7"> battle with the family dynasty behind Samsung</a>. 

	"We're seeing more and more of it," said Ele Klein, partner and co-chair of law firm Schulte Roth &amp; Zabel's activism practice, adding that "it's a slow build."

	There are obvious impediments. One is the language barrier, according to Klein. Then there are cultural differences, and differences in shareholder structure.

	Corporate behaviour also differs. In the US it isn't uncommon to see an activist load up on a corporate target's shares and push for a buyback. That strategy might not be as prevalent, or as successful, in places like Europe. 

	"Dividend payouts are much, much higher in Europe than they are in the US," Ben Laidler, HSBC's global equity strategist and head of Americas research, told Business Insider. 

	Then there are macro-economic issues. Many activists consider Europe to be a target-rich environment, but the eurozone crisis stymied activist campaigns in the region. As the region gets back on its feet, activism could pick up there. 

	"I see Europe as the next place that gets significant growth," said activist adviser Steve Wolosky, a partner at law firm Olshan Frome Wolosky. Olshan has worked on more than <a href="http://www.businessinsider.com/olshan-frome-wolosky-llp-in-2015-2015-8">50 activist campaigns</a> so far this year. 

	"There's going to be a lot of activity going over there."


	
		
			<img alt="soccer collision" data-mce-caption="Rangers' Steven Whittaker (top) collides with Hearts' Ian Black during their Scottish Premier League soccer match at Tynecastle stadium in Edinburgh, Scotland August 23, 2009." data-mce-source="REUTERS/David Moir" src="https://static-ssl.businessinsider.com/image/55f2e89d9dd7cc22008b9a68-3000-2541/rtr271ew.jpg" />
			
				REUTERS/David Moir
			
				Rangers' Steven Whittaker (top) collides with Hearts' Ian Black during their Scottish Premier League soccer match at Tynecastle stadium in Edinburgh, Scotland August 23, 2009.
		
		
	



	The activists will likely have to adapt their playbook: What works in the US won't necessarily work in the UK or in Australia or in Japan. Activists are much more likely to operate behind the scenes outside the US, exhorting company management to change strategy in private. 

	Global companies are alive to the threat, and are much more open now to hearing about activism and its leading protagonists than in the past, according to Young at Credit Suisse. 

	"Corporates in Japan, Korea, Hong Kong and Australia are much more interested in getting to know more about activism and how it may take shape in their home markets," he said.

	<h3>
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You Searched For "Jeffrey Ubben" and got 7 results

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