Producing 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.