June 26, 2014 Okapi’s Pat McHugh Quoted in FINalternatives
Activist hedge funds have been around for about a decade and their modis operandi has not changed dramatically in that time: buy a significant stake in a company, agitate for change, realize profits, repeat.
What has changed is the number of such investors: according to data provider Preqin, there are now over 400 activist hedge funds worldwide. Moreover, 2013 saw the launch of 28 new activist funds, the highest number of launches since 2007.
Pat McHugh is a senior managing director at Okapi Partners, a proxy solicitor that works with both activist managers and target corporations. He told FINalternatives that while “a lot of people are watching this one to see if it works out and if it is going to be a viable option going forward…I think it’s important that you have comfort with your partner and feel you can work with them because it would almost seem at a certain point there’s a potential for a divergence of interests in that situation.”
As Activist Hedge Funds Boom, ‘Hushmail’ Takes Hold [FINalternatives]