13
Jun

Activism and private equity

Escrito el 13 Junio 2007 por Juan Toro en Financial Markets

There might be a blur difference between hedge fund activism and private equity activity, but there is definitely a difference. Private equity activity can be summarized as follows: a private equity firm sees value on a firm, it acquires the firm, gets involved in management and will wait till their decisions and strategies mature.


Hedge fund activism, on the other hand, just tries to get a percentage of a company, enough to have strong voice and communicate with other institutional investors. Jointly with other shareholders the hedge fund tries to implement a turn in the management and decisions of the firm. When the market believes that the turn has been fulfilled and the equity soars, the hedge fund leaves the firm with a capital gain. A recent episode of this strategy is the battle sparked by the Children

Comentarios

Aún no hay comentarios.

Dejar un Comentario

*

Utilizamos cookies propias y de terceros para mejorar nuestros servicios y mostrarle contenido relacionado con sus preferencias mediante el análisis de sus hábitos de navegación. Si continua navegando, consideramos que acepta su uso. Puede cambiar la configuración u obtener más información aquí. Aceptar