Activist investors to continue providing employment support to analysts.
WSJ reports that activist investors have raised billions of dollars for campaigns that may take shape in 2015. For those of us who review companies and deals for investors, we say “Hooray.” Funds looking for potential targets and arbs sniffing around presumed, proposed and announced deals should have a busy year.
Through November, activists held $115.5 billion in assets, up from $93 billion to start the year, according to hedge-fund tracker HFR.
Familiar names like Ackman, Loeb and Icahn were featured prominently. In addition to the bankroll, recent history is providing some confidence.
The success the investors enjoyed in getting their way in 2014 will test them in the coming years as companies they now control are scrutinized for signs that promised changes are paying off. If not, activists risk losing the support of other investors they rely on.
Split-ups and Spin-offs seem to be the popular request these days, with targets such as EMC, eBay/PayPal, DuPont and PepsiCo.