Hedge fund Anson Funds is preparing for a proxy contest at Match Group, with plans to nominate multiple directors to the online dating giant’s 10-member board, according to a report by Reuters citing sources familiar with the matter.

Anson, which disclosed a 0.6% stake in Match at the end of December, has been pushing the parent company of Tinder, Hinge, and OkCupid to reevaluate its capital allocation strategy, implement cost-cutting measures, and explore a strategic review of its MG Asia business. The fund has also raised governance concerns and pressed for a clearer corporate strategy, the report says.

This year, only three of Match’s 10 directors are up for election, heightening tensions among investors advocating for annual elections of the full board. Anson has flagged long-standing ties between certain directors and former parent company IAC/Interactive as problematic and has expressed concern over the company’s executive turnover – four CEOs in five years – citing it as a destabilising factor.

In response, a Match spokesperson emphasised the board’s commitment to good corporate governance and protecting stockholder interests. The company, now under the leadership of CEO Spencer Rascoff, who took the helm last month, remains focused on business growth and shareholder value creation.

Despite more than a dozen meetings between Anson and Match over the past year – leading to incremental changes such as an investor day and an accelerated capital return policy – Anson remains dissatisfied with the pace of reform.

The campaign is spearheaded by portfolio manager Sagar Gupta, who joined Anson in 2023 to expand its activism strategy. Gupta, a veteran of technology and media investments, previously led similar efforts at Legion Partners and recently joined the board of Five9, a US call centre software firm.

Match’s valuation has plummeted from nearly $40bn at the peak of the pandemic to approximately $8bn today. Its stock has declined 2% year-to-date and 67% over the past three years, significantly underperforming the S&P 500, which gained 41% over the same period.

The company’s depressed valuation has attracted multiple activist investors. In early 2024, Elliott Investment Management disclosed a $1bn position, leading to the addition of two new directors.

Meanwhile, Starboard Value has pushed for a potential sale if Match fails to reinvigorate its business. Regulatory filings show Elliott holding a 4.8% stake and Starboard 5.8% as of year-end 2024.

While Anson’s stake is comparatively smaller, market observers note that activism is no longer dictated by position size.