David Batchelder,
Founder and Principal, Relational Investors LLC
Richard Elden,
Principal, Lakeview Investment Manager LLC
Edward Garden,
Founding Partner and Portfolio Manager, Trian Fund Management LP
Russell Read,
Chief Investment Officer, California Public Employees' Retirement System
Christopher Young,
Vice President, Director of M&A Research, Institutional Shareholder Services
Moderator:
Glenn Yago, Director, Capital Studies, Milken Institute
Russell Read of CalPERG, right, talks about his organization’s role in activist funds. At left is Edward Garden of Trian Fund Management LP.
The recent proliferation of hedge funds, going-private transactions and capital overhang in the market has prompted a number of managers to pursue new strategies to achieve target returns. Activist funds, seemingly focused on an old-but-new-again strategy, have received considerable attention. While some draw inevitable comparisons to "raiders" and "takeovers" of the 1980s, this most recent generation of activist investing suggests catalysts that enable companies to realize shareholder value. Managers of today's activist funds do an enormous amount of research on their targets, take large positions in the companies and often take great pains to characterize themselves as friendly. Among the questions panelists will tackle are: Can hedge-fund activism lead to long-term, sustainable value growth? When does a fund become activist - and who are they friendly or hostile to? What's the interplay between private equity and activist funds? How long will a fund involve itself with management, the board and other shareholders? What is the empirical evidence of share-price performance before and after an activist disclosure?
Global Conference 2013
Former Prime Minister Tony Blair, philanthropist Bill Gates and Strive Masiyiwa of Econet Wireless discuss advancing prosperity in Africa.
