August 21, 2020
Six Flags believes that raising the Form 13F reporting threshold to $3.5 billion in equity assets from $100 million cannot be justified by any reasonable cost-benefit analysis. The increase would greatly reduce market transparency and essentially eliminate the primary tool used by most public companies to 1) identify and engage with long-term investors and 2) monitor the activity of potential activists. The increased threshold is of particular concern to smaller issuers that cannot justify the expense of stock surveillance firms to analyze trading patterns and try to determine which investors are buying or selling shares. The proposed rule change ignores the reality of todays market, where small but vocal participants can wield a disproportionate influence over public companies, often to the detriment of other shareholders. It would eliminate the usefulness of this important tool for Six Flags, and we are strongly opposed to the proposal.