US Hedge Funds Target Success in EuropeA 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