Thursday, 28 August 2014
Last updated 8 min ago
Sep 30 2013 | 12:54pm ET
Shareholder activists rarely see eye-to-eye—take the disagreements between William Ackman, Carl Icahn and Daniel Loeb this year—a fact that is showing up in their returns.
The performance gap between among some of the biggest activists this year is more than 23 percentage points, Pensions & Investments reports. The best performer is Trian Fund Management, up 24.3% through the end of August. The worst is Pershing Square Capital Management's International Fund, led by Ackman, which is up just 1.1% through Sept. 13.
The gap may seem large, but it's par for the strategy: There was a 34 point gap last year, a 24 point gap in 2011 and a 33 point gap in 2010.
"There always is a lot of dispersion in the returns of activist hedge funds because of their idiosyncratic investment styles," Mesirow Advanced Strategies's Terra Fuller told P&I. Mesirow puts the average annual gap since 2005 at 25 percentage points per year.
P&I compared eight of the largest activist hedge funds used by institutions.
Activists frequently take opposing sides on a company, such as Herbalife. Pershing Square has a $1 billion short against it, while Icahn and Loeb's Third Point have made money on the long side of the nutritional supplements company.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...