By Chris Gillick
The majority of hedge funds performed strongly in 2009, but not all of their most prominent equity trades have been winners. A number of activist stakes taken before the meltdown of 2008 are still bleeding, while activist funds in general have retreated from the limelight.
During most of the past decade, activist investors could depend on private equity firms and strategic buyers fueled with cheap credit to help them cash out. But with that endgame mostly shut off, the strategy has scaled down. According to FactSet SharkWatch, which tracks shareholder activism, hedge funds launched only 124 activist campaigns in 2009, half the amount undertaken in 2008. "Not only do hedge funds have fewer assets under management to put to work, but also they must tread carefully given the current economic and political environments," says John Laide, product manager for FactSet SharkWatch.
Perhaps the bet gone most awry...
