(Reuters) - Yahoo Inc's new interim chief executive is a signal to Wall Street that the company is returning to a media-centric strategy, even as the its weekend deal with activist hedge fund Third Point raises new questions about its future.
Yahoo Inc's new interim chief executive is a signal to Wall Street that the company is returning to a media-centric strategy, even as the its weekend deal with activist hedge fund Third Point raises new ...
By Adam Muller:Activist investing is exciting. When a very accomplished hedge fund manager decides that a company is not only undervalued, but undervalued because of dramatic mismanagement, poor leadership, and a dysfunctional board of directors, it becomes a very public situation, allowing other investors to assess the merits of the position and, if they so choose, to jump on the bandwagon and go for a ride.
By Insider Monkey:
Corporate insiders have material non-public information about their companies. They sometimes even trade on such information. Hedge funds sometimes also can obtain material non-public information and trade on it. This is illegal and those insiders and hedge fund managers may be caught and be sent to prison one day. However, ordinary investors can benefit from material non-public information by imitating the investments of insiders, which is totally legal.
Alibaba Group Holding Ltd (BABA) just had the biggest Initial Public Offering (IPO) in the history of the US market. This boded well for Yahoo! Inc. (YHOO), selling 122 million Alibaba shares and making $8.3 billion before tax. But the IPO also raised eye brows on Yahoo’s current valuation that marks Yahoo’s core business as almost worthless.
DealBook's Alexandra Stevenson has an article on activist investors like Daniel Loeb, Carl Icahn, David Einhorn and Bill Ackman. One unidentified hedge fund manager in the article has a passive aggressive approach to dealing with executives at companies he's targeting.