Thanks to the Fed's 6 years of ZIRP, activism, i.e., loud, brash billionaires who come in and tell a company's management they need to use cheap debt to repurchase stock, engage in reckless M&A or spin off profitable units or they will become even louder and brasher has become one of the only profitable hedge fund strategies. Of course, this will cease the moments rates show even the smallest hint of rising but until then it is paradise for all activist hedge funds.
Activist investor Jeff Smith, who runs hedge fund Starboard Value, wants to to make a change to Olive Garden's famous unlimited breadsticks and salad. Smith's fund owns an 8.8% in the restaurant group's stock.
Tim Armstrong is a happy man today. The AOL CEO just got an important vote of confidence from investors, surviving a challenge from activist hedge fund Starboard Value at the company's annual shareholders' meeting. Starboard failed to secure any of the three board seats it had targeted, with all of AOL's current directors winning reelection.
Starboard Value, the activist hedge fund that seeks to replace three of AOL's directors with its own nominees next month, has laid out its disagreements with the internet giant's current management in a 96-page presentation to investors.
Whether you agree with Starboard, which owns 5.3% of AOL, or have faith in chairman Tim Armstrong, the presentation makes for some hair-curling reading
By Nadia Damouni and Olivia Oran NEW YORK (Reuters) - Since Starboard Value LP was spun off as a separate hedge fund just over two years ago it has been fast gaining a reputation for aggressive shareholder activism, pushing for change in household names including AOL and Office Depot Inc . Initially investing in small cap value companies, Starboard quickly gained a reputation in Silicon Valley as a corporate raider, targeting mostly technology companies including Agilysys Inc , Openwave Systems and Extreme Networks Inc among several others. ...
NEW YORK (Reuters) - Since Starboard Value LP was spun off as a separate hedge fund just over two years ago it has been fast gaining a reputation for aggressive shareholder activism, pushing for change in household names including AOL and Office Depot Inc .
(Reuters) - AOL Chief Executive Tim Armstrong's compensation declined to $3.2 million in 2011 from some $15.3 million in the prior year, according to a regulatory filing. The 41-year-old former Google executive did not receive any stock rewards or options in 2011 and received a base salary of $1 million, which remained unchanged from 2010. The proxy filing also urged shareholders not to vote for the activist hedge fund Starboard Value's slate of board nominees. Starboard, which spun off from Ramius LLC in March 2011, launched a campaign late last year to shake up AOL.
Activist hedge fund Starboard Value LP nominated a slate of five candidates to AOL Inc's board, saying discussions with the company in the past two months had not yielded desired results. Starboard, which ...