Activist Investing 2.0: The Rise of Constructivist Capitalism

The world of shareholder activism is undergoing a quiet revolution. Traditional activist strategies—focused on short-term gains through leveraged buyouts, dividend hikes, or board shakeups—are giving way to a more nuanced approach: Constructivist Capitalism. This paradigm shift emphasizes strategic engagement, long-term value creation, and the reimagining of corporate governance through a lens that prioritizes operational transformation over financial engineering. As global markets grapple with multipolarity, shifting economic ideologies, and the erosion of neoliberal hegemony, investors are increasingly adopting constructivist principles to navigate complexity and unlock sustainable value.

The CTT Case Study: A Blueprint for Constructivist Activism

One of the most compelling examples of this new model is GreenWood Investors’ engagement with CTT, Portugal’s postal operator. For decades, CTT struggled with stagnant revenue and outdated infrastructure, its performance hampered by rigid contracts and a lack of e-commerce capabilities. In 2019, GreenWood took a board seat and initiated a transformation strategy centered on customer-centric innovation. By investing in digital logistics, restructuring operations, and prioritizing service quality, CTT’s revenue grew by nearly 10% within a few years, while its net promoter score surged [1]. This case exemplifies the core tenet of constructivist capitalism: owner-like behavior. Rather than demanding quick fixes, GreenWood treated CTT as a long-term asset, aligning its strategy with customer needs and operational efficiency.

Principles of Constructivist Capitalism

Constructivist capitalism diverges sharply from traditional activism by emphasizing social and institutional frameworks over financial metrics. Key principles include:
1. Strategic Patience: Investors commit to multi-year engagements, often taking board roles to drive cultural and operational shifts.
2. Stakeholder-Centric Governance: Decisions are evaluated through the lens of customer satisfaction, employee engagement, and community impact, not just shareholder returns.
3. Normative Influence: Activists act as “architects” of corporate culture, embedding values like sustainability and innovation into governance structures [3].

This approach mirrors broader trends in international relations, where countries like Vietnam navigate U.S.-China tensions by balancing engagement with both powers. Vietnam’s participation in the Belt and Road Initiative (BRI) and the Indo-Pacific Economic Framework (IPEF) reflects a constructivist strategy: leveraging geopolitical multipolarity to maximize sovereignty and economic benefits [3]. Similarly, constructivist capitalists seek to balance competing interests—short-term pressures, long-term goals, and stakeholder expectations—to create resilient corporate ecosystems.

The Post-Neoliberal Shift and Investor Adaptation

The rise of constructivist capitalism is inseparable from the broader collapse of neoliberal economic hegemony. From 2023 to 2025, policymakers have increasingly embraced unconventional tools—tariffs, industrial subsidies, and price controls—despite their rejection by mainstream economics [1]. This divergence signals a new era where geopolitical and ideological factors shape corporate strategy as much as market forces. For investors, this means rethinking activism through a constructivist lens: engaging not just with boards, but with the broader social and political contexts that define a company’s operating environment.

In South Korea, for instance, governance reforms in 2025 explicitly encourage shareholder activism as a tool for corporate value creation [1]. These reforms align with a global trend where corporate social responsibility (CSR) is no longer a peripheral initiative but a core driver of brand equity. Research shows that CSR-integrated business models can translate brand reputation into measurable financial performance, particularly when aligned with stakeholder expectations [2]. This underscores a critical insight: in a post-neoliberal world, companies that prioritize long-term relationships over quarterly earnings are better positioned to thrive.

Strategic Engagement as the New Edge

The implications for investors are clear. Constructivist capitalism demands a shift from transactional activism to strategic partnership. Activists must now act as co-creators of value, leveraging their influence to drive operational innovation, cultural transformation, and stakeholder alignment. This approach is not without risks—long-term engagements require patience, and outcomes are often nonlinear—but the rewards are substantial. CTT’s turnaround, for example, demonstrates that strategic engagement can unlock value in even the most entrenched industries.

Conclusion: The Future of Shareholder Activism

As the global economy fragments into competing ideological blocs, the role of the activist investor is evolving. Constructivist capitalism offers a framework for navigating this complexity, blending strategic patience, stakeholder engagement, and institutional innovation. For investors, the lesson is simple: the next frontier of value creation lies not in short-term financial engineering, but in the ability to shape corporate ecosystems that endure.

In this new era, the most successful activists will be those who act not as adversaries, but as architects.

**Source:[1] VALUE: After Hours (S07 E16): Owner/Operators and Constructivist Activism at CTT, Leonardo and Swatch with Steven Wood [https://acquirersmultiple.com/2025/05/value-after-hours-s07-e16-owner-operators-and-constructivist-activism-at-ctt-leonardo-and-swatch-with-steven-wood/][2] Translating brand reputation into equity from the stakeholder's [https://jcsr.springeropen.com/articles/10.1186/s40991-023-00085-5][3] A constructivist approach to Vietnam strategy amid U.S. – China geoeconomic rivalry: The case of BRI and IPEF [https://www.researchgate.net/publication/393199027_A_constructivist_approach_to_Vietnam_strategy_amid_US_-_China_geoeconomic_rivalry_The_case_of_BRI_and_IPEF]