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When (Not) to Listen to Activist Investors
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Reference: HBS-F0801H-E
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Number of pages: 4
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Geographic Setting: United States
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Publication Date: Jan 1, 2008
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Source: HBSP (USA)
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Type of Document: Article
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Industry Setting: Hedge funds
Description
Poorly performing managers shouldn't necessarily heed the demands of hedge funds that call for change in a company's strategic direction. Giving in does not, on average, yield stock gains that outperform the market - that is, unless the firm gets acquired.