Tuesday, 25 October 2016
Last updated 33 min ago
Jan 13 2014 | 12:44pm ET
Fund of hedge funds EnTrust Capital has garnered $600 million to invest in one of the industry's hottest strategies: shareholder activism.
The New York-based firm raised the money late last year, much of it for the new EnTrsyt Global Activist Fund. That vehicle, which debuted in November, has invested with such well-known activists as Trian Fund Management and ValueAct Capital.
The activist bent is not new for EnTrust, which has invested with the likes of Carl Icahn and Steel Partners for more than 10 years. The new fund plans to invest in as many as 10 such managers, and in addition to Trian and ValueAct features Blue Harbour Group in its portfolio.
"What we have seen in the institutional world is continued disenchantment with the traditional long-only" managers, EnTrust's Gregg Hymowitz told Bloomberg News. "Activism from an academic and real return perspective has proven its worth."
But the EnTrust founder is wary of the strategy's growing popularity.
"What you have to be careful about is you are going to have more and more guys calling themselves activists," he said. "Soon everyone and their mother will be an activist."
Hymowitz said the new fund aims to return three to five percentage points above the return of the Standard & Poor's 500 Index.