Sat, Apr 18, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Moody’s reports that activist hedge funds will pursue larger targets

Thursday, February 21, 2013

Beverly Chandler, Opalesque London: Research and analysis firm Moody’s Investor Services reports that activist hedge funds are likely to pursue larger targets in 2013.

The report found that the current financial climate is favourable towards activist investing. "Record cash on corporate balance sheets, a ready supply of inexpensive debt and increased shareholder risk appetite given the low interest rate environment are just a few of the contributing factors" Moody’s wrote.

2012 saw activists take high-profile positions in large cap companies including Canadian Pacific Railway, Adobe Systems, Forest Laboratories and Procter & Gamble. Trian Fund Management, the hedge fund run by Nelson Peltz, has been vocal in pushing for changes at State Street and Lazard, in which his fund took a 5.1% stake in last year.

The activity has not subsided going into 2013. Greenlight Capital’s founder David Einhorn has filed a lawsuit against Apple in a bid to get the technology giant to issue preferred stock in order to return its $137bn cash stockpile to investors.

The report warned issuers most at risk from activist pressure were those with poor financial and stock price performance, multiple business lines that could be sold or spun off to unlock value and those that activists believed had entrench......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Tiger Global falls 2.9% in March, down 5.3% in Q1[more]

    From Reuters.com: Investment firm Tiger Global Management, one of the hedge fund industry's most closely watched players, told clients that its hedge fund lost 5.3 percent during the first quarter, an investor said on Wednesday. Much of the decline came in March when the fund lost 2.9 percent,

  2. It’s not just hedge funds—IMF study finds stability risks from ‘vanilla’ funds[more]

    From MarketWatch.com: Leveraged hedge funds and banklike money-market funds are the parts of the asset-management industry most associated with risks to financial stability. But a report from the International Monetary Fund suggests that “plain-vanilla” mutual funds and exchange-traded funds also ca

  3. Hedge funds gain 2.4% in Q1 driven by currency and commodity markets[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted positive results last March to conclude a strong first quarter, with performance driven by strong macro trends in currency and commodity markets, complemented by broad-based gains and positioning in event driven, equity hedge and fixed income-b

  4. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  5. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

 

banner