Wed, Nov 25, 2015
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

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. Investing - BlackRock targets ETF investors with flexible currency hedging, Nelson Peltz bets on General Electric Company and Mondelez International, Apple plummets to 4th place among hedge holdings, from No. 1, Top Q3 equity purchases and sales of top 50 hedge funds[more]

    BlackRock targets ETF investors with flexible currency hedging From BlackRock Inc., the world’s largest asset manager, is changing course on exchange-traded funds that protect against currency volatility. After stressing the easy switch between hedged and unhedged ET

  2. Chicago-based Achievement A. M. is shutting down hedge fund following losses[more]

    Komfie Manalo, Opalesque Asia for New Managers: Achievement Asset Management, a Chicago-based hedge fund firm, has announced it is closing down its hedge fund operation following losses on energy market bets this ye

  3. Lyxor Hedge Fund Index up 0.1% (+0.4% YTD) as global macro and CTAs outperform[more]

    Komfie Manalo, Opalesque Asia for New Managers: Global macro and CTAs outperformed the hedge fund space and delivered positive returns last week amidst difficult market conditions, with the Lyxor Hedge Fund Index up

  4. BlackRock is shutting down its Global Ascent macro fund[more]

    Komfie Manalo, Opalesque Asia: BlackRock, the world’s largest asset manager, has announced plans to shut down a macro fund, Global Ascent Fund, because of "headwinds facing the industry". The hedge fund, which makes bets on stock, bond and currency markets, will return money to investors. Ac

  5. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the