It’s no secret that hedge fund activism is on the rise—stalwarts like McDonald’s, Time Warner and Circuit City have been targeted by activist funds in recent months. Now, for the first time, a report describes the types of companies most likely to be targeted by funds, and outlines steps for preempting the wrath of highly vocal and impatient investors.
The Citigroup report, “Hedge Funds at the Gate,” offers a timely guide to help executives understand the implications of these new active investors. “As their initial activists efforts have proved profitable,” notes the report, “we expect the trend of hedge fund activism to continue and even grow in the coming months.”
