15 Feared Activist Hedge Funds That Shake Up Corporate America
Meet the Activist Hedge Funds That Are Reshaping the Corporate Landscape
Engaged Capital: A Force to Be Reckoned With
Engaged Capital, one of the most formidable activist hedge funds, has its sights set on VF Corporation (NYSE: VFC). VFC's stock has plummeted by 97.8% year-to-date, and Engaged Capital is determined to shake things up.
As of the first quarter of 2023, 33 out of 920 hedge funds had disclosed stakes in VFC. Engaged Capital's investment remains undisclosed, but the activist investor has made its intentions clear.
Engaged Capital recently disclosed plans to boost VFC's performance, sending its stock soaring nearly 14% on Tuesday. A member of the founding family behind VFC is backing the activist investor's push for board changes.
Other Activist Hedge Funds Making Waves
- Jana Partners
- Third Point
- Elliott Management
- ValueAct Capital
- Pershing Square Capital Management
These hedge funds have a proven track record of unlocking value in underperforming companies. They typically engage in direct dialogue with management, proxy fights, and other tactics to push for changes.
The Impact of Activist Hedge Funds
Activist hedge funds can play a significant role in improving corporate governance, increasing shareholder value, and driving innovation.
However, it's important to note that their strategies can also have negative consequences, such as short-term stock price volatility and management distraction.
Conclusion
Activist hedge funds are a powerful force in the financial world, capable of shaking up corporate America and driving change. While their tactics may be controversial at times, their ability to unlock value and hold companies accountable cannot be ignored.
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