The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Memo: "Be Prepared For Attacks By Hedge Funds"

Back to Feature


Wachtell, Lipton, Rosen & Katz


                                                                                                                                December 21,2005


Be Prepared For Attacks By Hedge Funds


                                In this environment of attacks by hedge funds, including against some of our largest and most well-known companies, it is more critical than ever for companies to be prepared. Companies need to:


  • Be acutely aware of where they stand in relation to their peers. Relatively poor performance, regardless of the reason, can make one an easy target.


  • Consistently articulate the company’s business and financial strategy in a way that is meaningful and understandable.


  • Carefully monitor analyst reports, particularly for suggestions of strategic changes the company could make. Company officials must be careful when discussing potential strategies with analysts, and “half-baked” ideas for the company’s strategic direction must be refuted or otherwise addressed immediately. Frequently, hedge funds are “turned on” to a company by an analyst who one way or another got an idea for a way to get a quick increase in the price of the stock.


  • Have in place sophisticated stock watch programs which alert management to new large stockholders and non-ordinary course patterns of stock purchases.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree