Medallion Financial Stakeholder Activism

In Stephen Hodges' 16 year investing career he has never engaged in activism or publicly criticized a company in which he has been invested – with the exception of Medallion Financial Corp. ZimCal Asset Management is not an activist firm but saw no other option in this situation.

ZimCal, Stephen Hodges and their affiliates – primarily BIMIZCI Fund LLC – have been invested in Medallion since 2021. At peak investment (June 2026), ZimCal had $11.85 million cash invested in preferred securities and common stock (58% preferred/42% common), with an estimated market value of $16.3 million to $17.8 million. ZimCal is one of Medallion's largest investors.

ZimCal's activist campaign included two proxy contests — in 2024 (opens in a new tab) and 2026 (opens in a new tab) — to replace Medallion's existing directors. Mr. Hodges focused on accountability for the conduct underlying the SEC fraud lawsuit (opens in a new tab) against Medallion, as well as on executive compensation, technology investment, governance, leadership, and business strategy. No proxy contest (opens in a new tab) was run in 2025, and the nomination notice was withdrawn prior to any solicitation or stockholder vote.

ZimCal's lead nominee received 27.1% (opens in a new tab) of shares voted in 2026, up from 22.1% (opens in a new tab) for its lead nominee in 2024 – a very strong showing given that Medallion insiders owned almost 40% of voted shares. Read here for the 2026 proxy campaign announcement (opens in a new tab).