Funds Europe magazine has just published an article on activist hedge funds operating in Europe. The article, penned by David Stevenson and entitled "Disruptive Elements", explains that the more public activist fund approach is a far cry from the lower key, behind the scenes approach known as "engagement" where parties seek to make changes which result in long term value creation. An example of the latter, longer-term investment approach is that pursued by RWC Partners, which runs three such funds. The literature cites examples such as Vivendi and Alliance Trust as recent European examples of activism.
One key finding of the article is not all firms operate the same way, so some are seen as taking a longer term focus as noted above while others are more short-term focussed, perhaps less concerned in the interests of the broader investor base. Lastly, one of the take aways here is that activists and the target firms may rely on the media to stoke interest and bring their case to the investment community. See more at http://www.funds-europe.com/may-2015/15676-hedge-funds-disruptive-elements.
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