"If the strategy is to suggest a stock buyback, that is clearly not going to happen at the moment. Simply suggesting the company buy back stock or similarly looking to a financial buyer or a private equity shop as an exit strategy is now off the table," says Barry Cronin, of Taylor Advisors, a fund of hedge funds that at times invests with activist hedge funds.
Activist hedge funds have had a stimulating few years. Their performance is derived from building a stake in a company, turning companies around or finding economic means to unlock value and then selling the stake to a private investor or back into the market. In a bull...
