Saturday, 28 March 2015
Last updated 10 hours 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.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…