Activist hedge fund managers are a controversial lot. They claim they take positions in undervalued companies to force changes in the business and unlock value. But because their portfolios are typically highly concentrated, the risk is if they fail to unlock value (or take positions in overvalued companies), the losses for investors are very steep indeed.
Dangerous to relay on "averages" when the AUM and returns in the sample are not really normal.
Yes activist HF are good at stock picking but I'd comfortably bet that the top quantile is better at other things too. (Picking management, winning boardroom seats and battles, discounting Product lines....)
Dangerous to relay on "averages" when the AUM and returns in the sample are not really normal.
Yes activist HF are good at stock picking but I'd comfortably bet that the top quantile is better at other things too. (Picking management, winning boardroom seats and battles, discounting Product lines....)