February 27, 2006

Hedge Funds Impact Stock Movements

It is being reported that some speculative stock funds known as hedge funds are trying to push up the stock prices and boost corporate efficiency rather than takeover underperforming companies. Earlier, activists fought corporations at annual meetings, but now the attempt is to force corporations to take steps to improve their performance. Ncpa reports

Their tactics include using the media to bolster shareholder support, win Wall Street allies and follow through on threats. Furthermore, the wealth of the hedge funds helps them endure long battles with managers. As a result, the intimidated companies now surrender faster.

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