Mergers & Acquisitions Research Centre (MARC), Cass Business School, City, University of London
Abstract
ince 2010 there has been an incredible inflow of capital to hedge funds that focus specifically on activist investing. The aggressive and often hostile actions of activist funds have created negative publicity and an increased focus on the shortened holding period of these investors. But are activists a blessing or a curse?
This report, produced by the M&A Research Centre (MARC) at Cass Business School provides an insight into the short- and long-term performance effects of activist campaigns in the United States, Germany, and the United Kingdom since the financial crisis.
This report should not be considered as a guide for activist investors on what tactics to use or a guide for company executives on what they should be prepared for. It rather highlights important patterns in the outcomes of shareholder activism in the United States, Germany, and United Kingdom since the beginning of 2010, when the economies of these countries were emerging from the depths of the financial crisis.
Activism tends to be concentrated largely in the United States, but the expectations for further expansion into Europe make it important to understand its existing environment and what activist methods have had success in the region. As equity markets reach new heights in Europe, there will be new opportunities for activist investors
