Tag Archives | Hedge Fund Activists

Shareholders are overrated

By Susan Holmberg (originally published by Quartz at Work) - For over four decades, corporations have shifted their strategy to one singular goal: maximizing payouts for shareholders… [Cross-posted from Quartz at Work publication of June 25, 2018 at https://qz.com/work/1313651/shareholders-are-overrated/]

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Walmart’s $20 billion buyback may be bid to forestall potential activists

By Cathaleen Chen (originally published by theStreet) - Wal-Mart Stores Inc.’s $20 billion stock buyback program could be a bid to quiet dissent among a group of increasingly restive institutional shareholders, even though the massive family-owned retailer doesn’t now face any known activist threats… [Cross-posted from theStreet publication of October 15, 2017 at https://www.thestreet.com/story/14337590/1/does-walmart-have-an-activist-problem.html]

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The $31 billion hole in GE’s balance sheet that keeps growing

By Katherine Chiglinsky, Brandon Kochkodin, and Rick Clough (Originally published by Bloomberg) - It’s a problem that Jeffrey Immelt largely ignored as he tried to appease General Electric Co.’s most vocal shareholders. But it might end up being one of the costliest for John Flannery, GE’s newly anointed CEO, to fix…. [Cross-posted from Bloomberg publication of June […]

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Brokaw village lends name to hedge fund bill

By Nora G. Hertel (originally published by Wausau Daily Herald) – The village of Brokaw could become the namesake of a federal policy seeking to curb the influence of outside investors who profit off struggling businesses. The Brokaw Act is inspired by and named after the village, which has been approaching insolvency since the closure of the Wausau […]

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Will more regulation be imposed on stock buybacks

By Cydney Posner (originally published by PubCo@Cooley) - Lots of companies have been buying back their stock in recent years, either on their own initiative because, for example, management thinks the shares are undervalued, or sometimes at the insistence of  hedge fund activists bent on increasing the market price of the shares. [Cross-posted from PubCo@Cooley publication […]

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Big firms increasingly resort to ‘corporate cocaine’

By Steve Denning (originally published by Forbes) - A new study by S&P Capital IQ, announced now in the Wall Street Journal, shows that public companies continue to sharply increase their spending on share buybacks and dividends, while decreasing spending on investment. Median spending on share buybacks and dividends by firms in the S&P 500 increased from 18% of […]

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General Motors’ stock buyback follows a worrying trend

By Steven Davidoff Solomon (originally published by The New York Times) – General Motors’ announcement that it will buy back $5 billion worth of stock raises the question of whether the stock buyback has turned into a shareholder activist shakedown. G.M. did not open its coffers willingly. Harry J. Wilson, a former member of the […]

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