Moody's: Activists Big-Game Hunting In '13

Feb 25 2013 | 11:52am ET

Activist hedge fund managers are licking their chops this year, according to a new report from Moody's Investor Services.

Such managers will pursue larger targets this year as corporate balance sheets grow alongside investors' taste for risk, Moody's said in the report, issued in the midst of Greenlight Capital's battle with Apple Inc. over that company's $137 billion cash horde.

"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.

The ratings agency warned that technology, industrial goods, consumer goods, basic materials, pharmaceutical and energy companies, especially those whose stock price have taken a beating, are at highest risk.


In Depth

Q&A: Omni Macro Fund Bullish On India, Watching China

Mar 4 2015 | 3:35pm ET

Omni Macro Fund was formed in 2007 by Stephen Rosen, previously a prop trader at...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Managing Diversification And Drawdowns In The “New Normal”

Mar 5 2015 | 2:42pm ET

In 2008-2009 diversification alone failed to provide adequate risk management for...

 

Editor's Note