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Alex Gavrish This article was authored by Alex Gavrish, founder and CEO of Etalon Investment Research, and author of "Wall Street Back To Basics."
Elliott Associate discloses Informatica stake
On January 26th, 2014, an activist hedge fund Elliott Associates, managed by Paul Singer, disclosed a large stake in shares of Informatica Corporation. Elliott was already involved in a number of activist investments in the technology sector, and might propose a sale or an LBO of the company.
Many investors follow activist investors and copy them, investing into same companies. Overall, activist investors’ targets are certainly an interesting niche to focus on, and attractive investment opportunities can be found among them. However, it might be not so easy to replicate activists and achieve similar performance. Even though the interests of activists and other shareholders aligned, and both have as a main objective to see the value of their investment go up, the field is not without conflicts of interests.
Caveat emptor
The main caveat emptor on Elliott Associates can be learned by reflecting on fund's investment style. Quite a few of its past investments in technology companies, once publicly disclosed, or once an activist campaign moved into high gear stage, did not leave a lot of upside on the table for other investors. Such was the case with BMC Software, Compuware Corp, as well as Riverbed Tech...................... To view our full article Click here
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