Activist Investing Strategies aim to Boost Shareholder Value

Activist Investing Strategies aim to Boost Shareholder Value

Hedge funds and others using activist investing strategies can push companies to higher levels of profit and efficiency
In general, activist investing strategies are used by hedge funds and other large investors, or groups of investors, in an individual company to push the firm to boost… Read More

Expansion bolsters CIBC’s outlook

High-profile U.S. hedge funds continue to bet against Canada’s big banks. They feel rising interest rates and slowing real estate markets will lead to big writedowns.
However, the big banks, including CIBC, have plenty of capital to weather downturns in the Canadian economy. CIBC’s recent expansion… Read More

Q: Pat, here and there I’ve read about “activist investors” involved with certain companies and wonder how beneficial, if at all, they are to smaller shareholders. They strike me as likely focused on shorter-term gains for that company in order to reflect positively on their own bottom lines. What do you think? Thanks and cheers!

A: In general, activist investors are individuals or groups buying a company’s shares with the intention of boosting shareholder value and ultimately pushing up its share price.

Activist investing has surged in the past decade, led by a relatively small but powerful group of hedge funds… Read More

Spinoff portfolio beats the S&P 500

One of the reasons we like spinoffs so much is that academic studies often show that both the parent and the new company created by the spinoff generally do better than comparable firms for at least several years after the split takes place.
For example, a.. Read More