Returns to Hedge Fund Activism;

摘要

So far, the evidence presented in this monograph concerns the question of whether hedge fund activism creates value for shareholders of target firms. We now ask whether hedge fund activists create value for the investors in their own funds. That is, do activist hedge funds earn abnormal returns from their investment strategy? Given that activist funds bear most of the cost of intervention but only receive a small proportion of the direct gain, it is a priori unclear whether such activities are profitable to the activist funds (and, as a result, to the investors in these hedge funds).