Tue, May 31, 2016
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. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit

  2. Investing - Billionaire Wilbur Ross likes the look of Chinese bad loans, Hedge funds are still relevant in a diversified portfolio: 4 fundamental criteria for superior manager selection[more]

    Billionaire Wilbur Ross likes the look of Chinese bad loans From Bloomberg.com: U.S. billionaire Wilbur Ross said he’s considering investing in nonperforming loans in China, as Moody’s Investors Service said that the nation has the tools to prevent a financial crisis in the near term. I’

  3. Investing - Blackstone gives pricey Canadian energy and property thumbs down, One of the most concentrated hedge fund bets is getting crushed, Facebook is hedge funds' new tech darling,[more]

    Blackstone gives pricey Canadian energy and property thumbs down From Bloomberg.com: Canada’s energy assets are uneconomic and real-estate markets overvalued, making them less attractive for investment than in the U.S. and elsewhere, according to Tony James, president of Blackstone Group

  4. Study - Only 30% of institutional hedge fund portfolios beat the benchmark[more]

    Bailey McCann, Opalesque New York: A new study from CEM Benchmarking, an independent provider of cost and performance analysis for pension funds, shows that only 30 percent of institutional investors hedge fund portfolios beat the benchmark after fees. The study provides in depth analysis of real

  5. Opalesque Exclusive: $1bn hedge fund club grows to 668 managers, continues to dominate (Part One)[more]

    Komfie Manalo, Opalesque Asia: Despite an underwhelming 2015 and a slow start to 2016 in terms of performance, one group of managers that continues to dominate the assets of the hedge fund industry is the so called $1bn club – hedge fund managers with at least $1bn in assets under management (AU