Activist investing

SearchProducing your own price spikes in equities

Making a pro­fit as a result of cor­rect ana­ly­sis of the future move of a stock is nice. If one can spot a mayor inef­fi­ci­en­cy wit­hin a com­pa­ny be it a wrong capi­tal struc­tu­re, mayor gains to be made by a split up of com­pa­ny divi­si­ons etc. big­ger and safer gains are pos­si­ble. This is the busi­ness of activist inves­tors whe­re size­ab­le stock hol­dings are bought with the intent to make the nec­cessa­ry chan­ges hap­pen. Thus activist inves­tors often not only pro­du­ce size­ab­le gains for them­sel­ves but cau­se a lea­ner and fit­ter enter­pri­se to emer­ge. A text­book case: One of the well­known search pro­vi­ders decli­ned the offer of the big­gest ope­ra­ti­on sys­tem com­pa­ny on earth. The sha­re pri­ce cras­hed over  two years from 40 Dol­lars to below 15 Dollars/share, a pri­ce, whe­re its hol­dings in other com­pa­nies were worth more then the com­pa­ny pri­ce. A lea­ding Event Dri­ven hedge fund bought size­ab­le posi­ti­ons an repla­ced the for­mer CEO with a new one that then led the split and sale of the com­pa­ny. The stock pric­ve tripled. With its par­ti­ci­pa­ti­on into said hedge fund GAMAG Black+White gai­ned ist sha­re of this tran­sac­tion.