Active fund managers continue to suffer. The pandemic and volatility offered stock pickers a chance at redemption over their index fund foes, but that hasn’t happened, as
Reuters Breakingviews
points out this week, citing a study of 500 U.S. equity mutual funds. That market pressure, along with the bad optics of a campaign mid-pandemic, only adds to mounting challenges facing activist hedge funds, despite the needed repair work at many companies, according to a separate
Breakingviews
column. That’s not to say there won’t be some victories, as Starboard Value proved this week at GCP Applied Technologies, with investors said to be backing eight of its director nominations.
Meanwhile, activism and private equity continued its crossover, with news of Silver Lake purchasing a stake in a blank-check company, backed by Third Point, to assist with a deal involving one of its portfolio companies. The lines grow blurrier.
Stay safe and have a great weekend,
Michael