Activist Investments by Carl Ichan - 2623 Words

Hedge fund activists rely on their ability to guide corporate decisions in a manner that will unlock value at an underperforming company by altering management and strategic direction. Shareholder activists will make sizable investments in companies with the intention of affecting this â€Å"positive† change. There has been significant debate whether these activists are truly adding value to corporate shareholders. However, it does seem that the negative connotation associated with the term â€Å"activist† seems to be fading. Even the current Chairwoman of the Securities and Exchange Commission, Mary Jo White, remarked at a conference in December 2013 that the view of shareholder activists has progressed away from the negative†¦show more content†¦Clientsincluded university endowments, pension funds and wealthy investors. The primary strategy of this fund is to purchase stakes in public companies with the intention of pursing corporate change (Icahn often threatened proxy fights) to unlock value for shareholders. The goal of the change was to increase a firm’s lagging share price through: share buybacks, asset sales, asset spinoffs and/or senior level management changes, including forcing out the CEO. (ii) Icahn Enterprises, LP (IEP): a diversified holding company with operating segments in Investment, Automotive, Energy, Gaming, Railcar, Food Packaging, Metals, Real Estate and Home Fashion. (iii) Personal: Carl Icahn personally owns controlling stakes in companies. Through his investment vehicles he has taken substantial positions in several companies including: Gulf Western, Viacom, Marshall Fields, Marvel Comics, Revlon, Imclone, Fairmont Hotels, Blockbuster, Kerr†McGee, Time Warner, Netflix, Chesapeake Energy, Motorola, Dynegy and Herbalife. Icahn’s track record of boosting shareholder value is mixed (see the appendix for a complete list of filed 13D forms, with corresponding performance statistics, by Icahn over the last 10 years), but there are certainly targets of his activism that have seen substantial stock price increases after he invests. After urging for Netflix to pursue a sale, heShow MoreRelatedBrief Corporate History and Corporate Communication Practices1630 Words   |  7 PagesTeam. This website is to create an online community of a large number of members who are engaged on topics about buying, selling and thinking about green and sustainability. Issues and Crisis Management On February 24th 2014, billionair activist investor, Carl Icahn wrote an open letter to all eBay stockholders. Icahn is a major shareholder in eBay and slams the company about its corporate governance. He has been demanding that eBay and PayPal split into individual companies and highlights in his