Several prominent hedge funds are heading to the Standard & Poor’s 500 Index—at least in part.
S&P Dow Jones Indices announced yesterday that Affiliated Managers Group—which owns minority stakes in a number of hedge fund firms—would join its large-capitalization index at the close of trading on Monday. AMG, which is based in Prides Crossing, Mass., will replace Forest Laboratories in the index.
Forest is being acquired by fellow pharmaceutical company Actavis, a deal agitated for by Carl Icahn, who owns 11% of Forest and who has led an activist campaign at for three years. Icahn is set to earn nearly $1.7 billion on the deal.
AMG owns stakes in AQR Capital Management, BlueMountain Capital Management and ValueAct Capital Management, among other hedge funds and asset managers. In addition, the firm has recently agreed to buy a 20% stake in D.E. Shaw Group from the estate of the bankrupt Lehman Brothers holdings.