Here’s an excerpt from this “Institutional Investor” article:
A paper called “The Value of Activism: A Hedge Fund Investor’s Perspective,” published this month by a trio of U.S. college professors, examines how much return an activist play typically produces, compared to a non-activist bet made by the same hedge fund, based on a sample of 222 hedge funds operating between 1997 and 2011. On average, the activist positions neither outperformed nor underperformed the non-activist investments, according to authors Felix Zhiyu Feng of University of Notre Dame, Chengdong Yin at Purdue University, and Caroline Zhu from the University of Oklahoma. But there were some exceptions.
– Broc Romanek