The Returns to Hedge Fund Activism

  title={The Returns to Hedge Fund Activism},
  author={Alon Brav and Wei Jiang and Frank Partnoy},
  • Alon Brav, Wei Jiang, Frank Partnoy
  • Published 2008
Hedge fund activism is a new form of arbitrage. Using a large hand-collected data set from 2001 to 2006 we fi nd that activist hedge funds in the U.S. propose strategic, operational, and fi nancial remedies and attain success or partial success in two-thirds of the cases. The abnormal stock return upon announcement of activism is approximately seven percent, with no reversal during the subsequent year. Target fi rms experience increases in payout, operating performance, and higher CEO turnover… CONTINUE READING

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