Founded in 1977 by “vulture capitalist” Paul Singer, activist fund Elliott Advisors specialises in buying shares in publicly listed companies and then agitating for accelerated change to boost their share prices. 

It has earned a reputation as a no-holds-barred activist investor, with an unusually large appetite for public face-offs having taken on some of the world’s biggest companies. The hedge fund masterminded Samsung’s restructuring in 2016 and pressured mining giant BHP to demerge its US petroleum assets and scrap its dual listing in London and Australia in 2017.  

Earlier this week it was reported that it had secretly bought a stake in Taylor Wimpey, making it the third time the activist investor has been linked to a FTSE 100 company this year. The housebuilder’s share price has stagnated despite the strong housing market and feverish demand for new homes across Britain. Chief executive Pete Redfern stepped down with little explanation just days after Elliott bought a stake in the company. 

It is also currently tussling with Scottish energy group SSE and pharmaceutical giant GlaxoSmithKline (GSK). Elliott is reportedly pushing for SSE to separate or sell its renewables business, arguing that a break up of its assets could unlock greater value. In July, it demanded GSK’s chief executive, Emma Walmsley, remove herself from the helm of the company, citing “severe underperformance” and “years of under-management”.

The last time it went toe-to-toe with a FTSE 100 company was when it pressured Whitbread, the hospitality group that owns Premier Inn, to sell off the Costa Coffee chain in 2018, after building up a stake of more than six percent in the business. It was right after Costa Coffee reported a significant fall in sales, which triggered concerns Britain’s coffee shop boom had ended. 

Elliott aggressively pursued the demerger idea, believing that the coffee shop chain and Premier Inn were two very distinct businesses with little overlap and that at least £3bn of value could be created by splitting off Costa. Whitbread eventually sold Costa Coffee to The Coca-Cola Company for £3.9bn less than a year later. 

Elliott has not publicly confirmed its position in Taylor Wimpley or the size of its stake. There are rumours, however, that the hedge fund is angling for so-called corporate activity, which may include a takeover – something that Elliot has never shied away from proposing.

The Taylor Wimpey board has been put on alert, and understandably so. There is no sign of smoke just yet, but their house may well be on fire.