Hedge fund activists typically target companies with large institutional ownership. The rationale for this is twofold. First, institutional investors are able to better evaluate the success of an activist intervention, facilitating a faster convergence of the target’s share price to its improved fundamental value. Second, institutional voting directly impacts a campaign’s success in its more confrontational stages (Gilson and Gordon, 2013).
However, the academic literature has not addressed the
The week on Risk.net, March 10-16 2018Receive this by email