Description
Book SynopsisActivist hedge fund managers represent a small part of the $1.5 trillion hedge fund industry, but their approach is causing a stir among traditional managers and the investment community because they are shaking up the corporate establishment and making money for their investors. These types of managers are here to stay and Extreme Value Hedging tells the story of their rise to power in the U.S. and how they are spreading their influential gospel around the globe to places like China, Ukraine, South Korea and Sweden. Author Ronald D. Orol has a unique understanding of this world and through this book he shares his unparalleled insights in an easy to comprehend manner. He discusses everything from activist investor efforts to breakup the clubby insider world of corporate boardrooms to their deal-making or breaking pressure tactics and courtroom battles. Orol skillfully makes his case for each subject by offering revelations and examples from insiders like Ralph Whitworth, (Relational In
Table of ContentsPreface ix
Acknowledgments xvii
Introduction xxi
Part One: From Raiders to Activists and Everything in Between 1
Chapter 1: Growth of Activism and Why Corporate Raiders Aren’t Around Anymore 3
Chapter 2: Nuts and Bolts: How Activists Became Who They Are Today 25
Chapter 3: The Pack: How Activists Are Working Together (But Not Offi cially) 53
Chapter 4: How Activists Use Litigation to Pursue Their Agenda 75
Chapter 5: Why Activists Target Certain Corporations and Leave Others Alone 89
Chapter 6: Overperked and Overpaid: The Impact of Activists on Executive Compensation 103
Chapter 7: Hedge Specialization: Good or Bad? 117
Chapter 8: Regulation and Activists: How the Securities and Exchange Commission Helps (or Hurts) Activists 135
Part Two: Institutional Investors and Activists 155
Chapter 9: Institutional Investors on Activist Hedge Funds: Love'em or Hate'em? 157
Chapter 10: Activists Taking on Large Corporations Must Have Institutional Support 163
Chapter 11: Institutions and Activist Hedge Funds: Breaking Up Deals Together Around the World 173
Chapter 12: Just Vote No and No and No Again 181
Chapter 13: Institutions Changing Corporate Bylaws so Activist Hedge Funds Can Get Down to Business 191
Chapter 14: Can’t Be Them? Then Fund Them 201
Chapter 15: Institutions Behaving Like Activist Hedge Fund Managers 209
Part Three: Activism 2.0 217
Chapter 16: Technology, Communications, and Activists: Gary Lutin, Eric Jackson, and Anne Faulk 219
Chapter 17: When Is an Activist Fund Really a Private Equity Fund, and What’s the Difference? 231
Chapter 18: Funds of Hedge Funds Stake Out Activists 247
Chapter 19: Distressed Investing: How Activist Managers Buy Debt and Provoke Companies 263
Chapter 20: Hedge Activists in Western Europe, Asia, and Canada 271
Chapter 21: East Meets West: Hedge Activism Goes Global to Emerging Markets 299
Chapter 22: Value Investing versus Activism: Which One Is Better? 319
Conclusion: Saturation or No Saturation? 333
Notes 339
About the Author 361
Index 363
