Shah Capital, previously known for its activist investment strategy and position as the second-largest shareholder in Novavax Inc., is changing its approach to managing investments. According to Reuters, regulatory filings with the U.S. Securities and Exchange Commission (SEC) indicate that the firm has ended its efforts to influence control or corporate governance at the vaccine manufacturer. The move accompanies its transition into a family office.
As part of the restructuring, Shah Capital submitted Form ADV-W to the SEC, voluntarily withdrawing its registration as an investment adviser. The firm has established Himanshu Shah Family Office LLC to oversee its investment portfolio under the new arrangement. Himanshu Shah, the Raleigh-based founder, president, and chief investment officer of Shah Capital, will continue directing investment activities through this private, single-family organization.
The firm also plans to change its reporting classification for its Novavax holdings from Schedule 13D to Schedule 13G. This transition reflects its stated decision to hold the securities without seeking to influence the company’s management, governance, or control.
The restructuring follows a significant share sale on October 5, when Shah Capital sold 2.87 million Novavax shares at an average price of $11.35 each.
Despite the transaction, Shah Capital and its founder continue to hold substantial interests in the biotechnology company. Shah Capital reports beneficial ownership of 10.54 million shares, equivalent to approximately 6.39% of Novavax’s outstanding stock. Separately, Himanshu Shah reports beneficial ownership of 10.66 million shares, representing a 6.46% stake. These holdings indicate that the shift away from activist investing has not eliminated the firm’s significant financial interest in Novavax.
