Fewer than one in six hedge funds view themselves as activist, according to a survey of 50 global hedge funds by Thomson Financial, a business information provider.
Hedge funds have a reputation for taking an uncompromising stance, frequently evicting managers or forcing companies to change strategic direction. The Children's Investment fund last year succeeded in forcing the departure of Deutsche Börse chief executive Werner Seifert, while hedge funds Centaurus and Paulson with a combined 6.4% stake in Ahold, the Dutch supermarket chain, are pressing the company to restructure. But Thomson's survey suggested these activist campaigns are the exception rather than the rule. More than two thirds of 50 hedge fund managers interviewed said they were not activist, while just over 15% said their activism was limited to making suggestions to management. Less than 16% of hedge funds said they were occasionally or regularly activist.