With some fanfare, this month two corporate lifers left their white-shoe firms to start an activist hedge fund. That act alone, after careers serving CEOs and directors, would cause some head scratching. How they plan to succeed confuses us.
We and other activists we talked to wish them well. If they can find a new way to reform stubborn directors and executives, and convert them into responsible, responsive stewards of investor capital, they will have more than our lasting gratitude. They will also raise billions for further investment in what would become a profitable equity strategy.
We just can't see that happening. No activist investor that we know takes this very seriously. The reasons why, in a current blog post, should instruct all of us.
|