Mon, Mar 27, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Not so easy to replicate activist hedge funds and achieve similar performance

Monday, March 03, 2014

amb
Alex Gavrish
This article was authored by Alex Gavrish, founder and CEO of Etalon Investment Research, and author of "Wall Street Back To Basics."

With the amount of activist investments on the rise during the last few years, more and more media attention is given to activist investors and the companies they target. Targets you probably heard about are Apple with Carl Icahn dining recently with Apple’s CEO Tim Cook and pressing for increase of a buyback program, Daniel Loeb of Third Point pushing for corporate changes at Sotheby’s and Sony, Bill Ackman and his huge position in struggling retailer J.C. Penny which did not work out so well or could even be considered a total disaster as an investment, Jana Partners position in grocery operator Safeway, and the list can be continued.

Many investors follow activists and copy them by investing in same companies. There is even a mutual fund that offers investors exposure to shareholder activism as an investment strategy. Overall, target companies certainly provide an interesting area to focus on and one where attractive investment opportunities could be found. However, it might not be so easy to replicate activists and achieve similar performance. Even though in general the interests of activists and other shareholders are aligned, the field is not without conflicts of interest.

Announced activist campaigns by year (as of Feb 19, 2014; limited to Russell 3000 stocks)......................

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. Hedge fund liquidations in 2016 surpass 2009 levels, new launches decline[more]

    Benedicte Gravrand, Opalesque Geneva: Even as the hedge fund industry's total assets exceeded the $3tln milestone last year, hedge fund liquidations increased. So much so that 2016 had the highest number of liquidations since 2008, claims the latest HFR Market Microstructure Report, re

  2. Hedge funds find no joy in macro as returns lag Trump rally[more]

    From Gulfnews.com: In 2017, macro hedge funds were expected to shine. So far? Not so much. It's been a far from impressive first two months for funds that trade around macroeconomic events. Discretionary funds rose just 0.3 per cent through February, according to Hedge Fund Research Inc., while the

  3. Strategies - Billionaire investor Marc Lasry shares how he's playing markets right now, Classic models are failing FX hedge funds desperate for return[more]

    Billionaire investor Marc Lasry shares how he's playing markets right now From CNBC.com: Buy on the prospect of deregulation. Sell on the enactment of deregulation. That's the strategy that billionaire investor Marc Lasry is implementing, according to an interview with CNBC in Las Vegas

  4. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less

  5. Hedge funds await outcome of French elections, feel pinch on lower oil prices & weak dollar[more]

    Komfie Manalo, Opalesque Asia: Hedge funds felt the pinch of lower oil prices and weak U.S. dollar as the Lyxor Hedge Fund Index was marginally down as of the week ending 14 March, Lyxor Asset Management said in its Weekly Briefing. The Lyxor He