US Hedge Funds Target Success in Europe
A group hedge funds in the United States are now targeting European companies hoping the cultural divide will prove easier to bridge.
So-called
activist investors, who have seen their celebrity soar in North America
in recent years, are now arriving in force on European shores in search
of opportunities. These hedge fund managers argue that European stock
market valuations have lagged behind those back home and that companies,
traumatised by the continent’s debt crisis, are more open to radical
shake ups of their businesses than ever before.
Daniel
Loeb, a surfing and yoga enthusiast prone to quoting lyrics from the
late rapper Tupac in his updates to investors, recently bought a
position in the Dutch nutrition company Royal DSM, arguing it is
considerably undervalued. Other US activists making their presence felt
in Europe include the hedge fund Elliott, which has taken positions in
UK grocer Wm Morrison and several other companies recently, and
SpringOwl, which spent several months publicly attacking the UK gambling
company Bwin.party before reaching a truce in May. Bill Ackman, another
famed US activist, is trying to raise $4bn by listing a closed-end
investment vehicle in London this year.
Source: Financial Times
