Activists Boost Stock Gains: Report

Apr 1 2014 | 12:15pm ET

Shareholder activists have faced some withering criticism recently, accused of seeking short-term gains as the expense of a company’s long-term health. But over a five-year term, that allegation falls apart, according to a new study.

Bloomberg News shows that 81 companies targeted by activists over the past five years have seen their stocks rise by an average of 48% over the period. That figure easily tops the Standard & Poor’s 500 Index over the same time frame, by about 17 percentage points.

The benefit stands in stark contrast to those stocks’ performance in the six months leading up to an activists’ approach: They trailed the S&P 500 by about eight percentage points.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Why Is The Shipping Industry Underwater?

Jul 31 2014 | 7:31am ET

Anyone who’s taken a look at the global shipping industry recently probably knows...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note