CNNMoney.com- Efforts by hedge funds and other activist investors to fight for board seats, oppose mergers and otherwise shake up companies is on track to beat last year’s record levels, contrary to expectations that activity would dry up due to unstable market conditions.
There have been 72 campaigns waged by activists this year through Monday, with targeted companies ranging from Countrywide Financial Corp. (CFC) to the New York Times Co. (NYT). Last year, when shareholder activism hit record levels, there were just 54 campaigns waged over the same time period, according to FactSet SharkWatch, which tracks proxy contests and corporate takeover defenses.
Hedge funds continue to be big participants, including recent efforts by the likes of Carl Icahn and Triarc Cos.’s (TRY) Nelson Peltz. More than half, or 38, of the activist campaigns so far this year were initiated by hedge funds, compared with 21 during the same period last year and 17 the year prior, according to FactSet SharkWatch.
Activist investors, commonly hedge funds, seek to boost stock prices by forcing changes such as the sale of business units or stock buybacks, often by winning seats on boards. With the uncertain economic outlook and roller-coaster stock prices there’s been speculation that their heyday may have come to an end.
