Study Says Activist Investors Good For Long Term

HFA Padded
Mark Melin
Published on
Updated on

Critics have charged that the practice of activist hedge fund investors generates short term gains for activists but weakens the companies in the long run. This isn’t true, according to a new academic study titled “The Long Term Effects of Hedge Fund Activism.” Harvard University’s Lucian Bebchuk, Duke University’s Alon Brav and Columbia University’s Wei Jiang examined activist targets from 1994 to 2007, monitoring the stock price of activist target stocks against a benchmark index three years before and five years after the target intervention month. In almost all cases, the activist intervention improved long term stock performance. Activist investors…

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HFA Padded

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.