Tue, Jun 30, 2026
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Financial market turmoil sees activist investors holding positions longer, as proxy regulations change in their favor will investors have the required stamina?

Tuesday, May 05, 2009

From Kirsten Bischoff, Opalesque New York:

It seems the point has been reached when the feeling of helplessness against market forces has shifted to a feeling of anger, sparking a new wave of investor activism. However, this trend (seen this past weekend with CalPERS/Bank of America, US Government/Auto Industry) does not indicate investors are specifically looking for opportunities in which to invest as activists, but reacting to the poor performance of companies they have already invested in.

The question then for activist hedge funds is, do investors have the interest, the patience and the stamina required to allocate to a strategy with a much longer view than has been required before?

The strategy overall has not fared as well as others during this crisis, and fell more than 30% in 2008 (according to Hedge Fund Research). Investing in under-performing companies during downward markets is not the easiest strategy to sell to investors.

And activist funds have been trending towards longer holding periods as compared to a few years ago. “A lot of these activists now have been holding their positions for one, two, three plus years,” says Steve Balet, Senior Managing Director at New York-based proxy solicitation and investor response consultancy Okapi Partners LLC.

Pharmaceutical M&A likely activist target, but managers also looking at longer term restructures These longer holding periods ......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Nvidia extraordinary growth and the challenge of sustaining demanding valuations over time[more]

    Antonio Di Giacomo, Senior Market Analyst at XS.com, writes: Nvidia has established itself as one of the most extraordinary growth companies in the global technology sector. Over the past two fiscal years, its revenues have risen from levels close to $60 billion annually to well above $120 billi

  2. Secondaries take center stage: What the 2026 PE landscape means for GPs and investors[more]

    Matthias Knab, Opalesque for New Managers: The 2026 edition of Dechert's Global Private Equity Outlook - "Signs of a Gradual Thaw" - marks a notable shift in industry sentiment. After years of compr

  3. And, finally: Time to share it with the people[more]

    From Newsoftheweird: Leavenworth, Washington, has become a tourist destination because of the Bavarian theme businesses have adopted there, NPR reported. One shop, the Leavenworth Nutcracker Museum, houses the world's largest nutcracker collection, thanks to 101-year-old Arlene Wagner. Wagner sta

  4. Opalesque Exclusive: Private Markets Evergreen Funds - An Insider's View[more]

    Matthias Knab, Opalesque for New Managers: Private Markets Evergreen Funds: What Investors Need to Know Before They Dive In The democratization of private markets is well underway. Structural barriers t

  5. Opalesque Exclusive: Governance, Scale, and Boutique Resilience in a Consolidating Hedge Fund Industry[more]

    Matthias Knab, Opalesque for New Managers: The hedge fund industry has undergone significant consolidation in recent years, with capital increasingly concentrated among large multi-strategy platforms. Yet boutique m