ETFS Capital Calls for Leadership Change at WisdomTree, Board Responds
In a bold move, ETFS Capital has called for a shake-up in WisdomTree’s leadership, urging shareholders to vote against the re-election of certain directors. The investment firm expressed concerns about the current board and management, stating that significant changes are needed to increase shareholder value.
ETFS Capital believes that WisdomTree is undervalued due to the board’s decisions and opposes the company’s strategic direction. They criticized the board for not exploring potential strategic options, such as selling the business or implementing significant changes to improve shareholder returns.
According to ETFS Capital, WisdomTree’s core ETF business is worth much more than its current market value, estimating it to be between $2.1 and $3.0 billion. The group argued that the board’s focus on DeFi ventures, like WisdomTree Prime, has not generated significant financial returns and has diverted resources from the core business.
Furthermore, ETFS expressed frustration with the board’s composition and actions, particularly the reappointment of long-tenured directors who, in their view, support unsuccessful strategies. They called for shareholders to vote against the re-election of Chairman Win Neuger, Director Anthony Bossone, and CEO Jonathan Steinberg.
In response, WisdomTree’s board defended their leadership in a letter to shareholders. They highlighted the significant progress made under the existing leadership, pointing to a strong track record and robust governance improvements. The board emphasized the company’s record $107.2 billion in assets under management as of March 2024, showcasing the success of their core ETP business. They also defended WisdomTree Prime as a strategic venture aimed at capitalizing on emerging market opportunities.
Contrary to ETFS Capital’s claims, the board asserted that their initiatives are designed to enhance shareholder value in the long term. They urged shareholders to vote in favor of all highly qualified director nominees on the white proxy card.