‘Wolf Packs’ And Other Recent Trends In Hedge Fund Activism

The recent increase in hedge fund activism is "hyperbolic" and should be carefully assessed, according to two notable scholars, John C. Coffee Jr. (corporate law; Columbia) and Darius Palia (corporate finance; Rutgers), who have just published on comprehensive study on hedge fund activism entitled, "The Impact of Hedge Fund Activism: Evidence and Implications." The authors address various perspectives on the benefits and repercussions of hedge fund-led corporate change, relying on statistical analysis and market data to answer four questions:

• Who are the targets of activism?
• Does hedge fund activism create real value?
• What are the sources of gains from activism?
• Do the targets of activism experience post-intervention changes in real variables?