It understates the situation to simply state the pace of shareholder activism has increased recently. What we are witnessing is “activism on steroids,” says a new academic white paper that considers the impact of activist investors on publicly traded stocks. The study considers the negative impacts on research and development and shortening the corporate investment time horizon. Impact of shareholder activism on publically traded stocks While the impact on the stock price in the short term is clear (stock prices tend to move higher), the longer term impact is mixed, say Columbia University School of Law Professors John Coffee and…
Hedge Fund Activism Changes Corporate R&D Investment Time Horizon
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.