Squadra wins the first battle: asset manager elects three board members at Hapvida.

Squadra Investimentos successfully elected its three nominees to the board of directors of Hapvida , in an extraordinary general meeting held on Thursday, April 30, according to NeoFeed .

The assembly also approved an increase in the board size, which will now have ten members, up from nine previously. Joining the board are Tania Sztamfater Chocolat, formerly of the Canada Pension Plan Investment Board (CPPIB); Bruno Magalhães e Silva, formerly of JGP and Squadra; and Eduardo Parente Menezes, formerly of Yduqs.

Carlos Augusto Piani, CEO of Sabesp, and José Galló, former CEO of Renner, have left the board of Hapvida.

The election comes after the Rio de Janeiro-based asset manager criticized the company's management in recent weeks, raising questions about governance, capital allocation, and execution, as well as requesting the adoption of multiple voting rights to increase her influence in the contest.

In the letter, the fund manager offers a critical diagnosis of Hapvida's management since its IPO in 2018. The document cites a "series of misguided strategic, operational, capital allocation, and governance decisions" that allegedly led to one of the greatest value destructions in the recent history of the Brazilian stock exchange.

Until then, the administration's proposal called for the re-election of the current board members through a slate-based vote.

Since the release of Squadra's public letter , which criticized the company and suggested names for the board, Hapvida's controlling group had been increasing its stake to gain greater influence at the shareholders' meeting, arriving at the meeting with at least 55% of the shares, excluding treasury shares.

The race for votes also affected the stock's performance on the stock exchange. The company's shares have accumulated a gain of about 19% this month.

In the market, Squadra's attempt to expand its influence on the company's board had been viewed favorably by equity managers — many of whom had already reduced or eliminated their positions in Hapvida, given the recent history of deteriorating results and the share price itself.

Before the assembly, even managers who still maintained some exposure—however small—to the company were considering participating in the vote to support Squadra's nominations.