Hedge funds Activists want to obtain great returns through their agitation. In order to get the company to make meaningful changes that will uplift their stock price. Instead of aiming to take over a company in which they assume an equity position.  Hedge Fund Study One study by Brav, et al. noticed that the performance of the companies improved after being...

Takeovers, which used to be the exclusive fund territory of private equity funds, have been eyed by businesses. Ever since hedge funds began feeling pressure from competitors to generate high returns. Some examples include Edward Lampert’s takeover of Kmart in January 2000. Nelson Peltz’s acquisition of Wendy’s in 2008 and merged it with Arby. In 2011, they sold Arby’s to...

Some of the major activist hedge funds who have been in the “activist business” for a long time. Now include Carl Icahn, David Einhorn, and Bill Ackman, as well as Nelson Peltz who are often seen in the media. Other entrants in the business include David Einhorn, Ralph Whitworth, Barry Rosenstein, Jeffrey Ubben, and Jeffrey Smith CalPERS and CalSTRS Activist...

Over the past few weeks, we have discussed a multitude of topics regarding mergers and acquisitions. From tender offers, long-term mergers, structuring deals, anti-takeover measures, we have covered a lot. This article about Hedge Funds as Activist Investors opens up a whole new spectrum of topics we can discuss. This is an introduction to Hedge Funds as Activist...