Breakups seem to have become activists’ favorite tools when faced with an underperforming company. Following John Paulson’s pressure to Hartford to spin off its life business, Highfields Capital has disclosed it is in talks with Genworth Financial(GNW) with options that may include a spinoff of its mortgage insurance business. Highfields, a Boston-based hedge fund still run by co-founder… Read More »
Listening to (or reading) company conference calls are a necessary but often painful part of investing. Calls are usually filled with a bunch of numbers, some CEO speak and suck-up analysts (if the company is doing well) so anything out of the ordinary or even somewhat controversial becomes noteworthy. Throw in ‘legendary’ fund manager John Paulson and now… Read More »
Activist investors appear to be back and are once again using their clout to influence corporate decision making. Occasionally, this can lead to a spinoff such as the case with Bill Ackman’s Pershing Square and Fortune Brands (FO) or Carl Icahn and Motorola. Of course, not every company is looking for outside ‘advice’. Consider the recent news regarding… Read More »