NEW YORK, July 1 (Reuters) - Activist investors mounted

campaigns at a record number of companies globally during the

first six months of 2024 but have been less successful in

breaking into boardrooms as companies fought back effectively,

data from Barclays ( JJCTF ) shows.

Recent notable examples include Elliott Investment

Management's targeting of Southwest Airlines ( LUV ), while

Starboard Value is taking on design software maker Autodesk ( ADSK )

and Jana Partners is pushing for changes at silicon

carbide maker Wolfspeed ( WOLF ).

The surge in activity may lead to more costly battles

between activist shareholders and management over leadership

changes, spin-offs and outright sales in the coming months,

bankers, lawyers and investors said.

But uncertainty surrounding when interest rate cuts might

come, geopolitical turmoil and a looming U.S. presidential

election that could spell big changes in regulatory regimes,

could also make corporate fights tougher.

"We are seeing more activity but fewer transactions and that

means activist investors may have to dig in and stay around for

longer," said Jim Rossman, global head of shareholder advisory

at Barclays ( JJCTF ).

In the first half of the year, Barclays ( JJCTF ) tracked 147 activist

campaigns, toppling the previous record of 143 set during the

first six months of 2018.

In the second quarter, 86 campaigns were launched, fueling

the feverish pace. Elliott was the busiest activist, launching

11 new campaigns this year and committing some $11 billion in

capital, the data showed.

While not every campaign is about board seats, the number

won provides a good measure of how well companies are defending

themselves. During the first half, dissidents won 74 seats, down

from 93 in the same period a year ago though prominent activists

put in a strong showing in reaching agreements to join boards.

In U.S. proxy fights, activists won only 11% of the seats

they sought, down from 65% during the same time in 2023.

Management often persuaded shareholders that current leaders

were already pursuing the right strategy and that their board

directors were more qualified than the activists' nominees.

For example, hedge funds Trian Fund Management and

Blackwells Capital lost their high-profile fights to seat

nominees at entertainment giant Disney ( DIS ) and shareholders

at wireless tower owner Crown Castle ( CCI ) rejected co-founder

Ted Miller's appeal to elect him and others to the company's

board.

Last year, the average activist had returns of 18%,

according to Hedge Fund Research, which may have prompted

newcomers to try their hand at corporate fights. Returns for the

first five months of 2024, however, have been flat.

Veteran activists including Elliott, which joined the Crown

Castle ( CCI ) board, and Carl Icahn, who was handed two seats

at JetBlue ( JBLU ), are still securing directorships. The

Barclays ( JJCTF ) data showed 24 seats were obtained by "major activist

hedge funds" in the first half, compared with 29 in all of 2023.

Pushing for change at tech firms, such as Sachem Head

Capital Management's success in joining the board at cloud

communications firm Twilio ( TWLO ) this year, remained a

popular trend.

But bankers, lawyers and investors also say some investors

are shifting their focus to industrial companies.