Activists Getting Respect and Results - NYT
The New York Times has a interesting article on how activist investors are getting respect and getting results. Link
The articles discusses this week's firing of Home Depot CEO Bob Nardelli, the fruits of Ralph Whitworth of Relational Investors who was ruffling feathers at the company. The article has interesting background on Whitworth, saying his fund, "oversees about $7 billion, all invested in only nine companies that are chosen with an eye toward activist intervention." The fund has averaged a return of 25% over the last nine year.
There is an interesting quote in the article from James V. Pickett, chairman of Wendy’s, which was itself the target of activism from Pershing Square Capital and Nelson Peltz back in 2005. He said, "Most of the issues the activists raised at Wendy’s were things we were already dealing with. They just increased the intensity. But when they own that much of the company, you have to listen to them even if you don’t want to.”
Recent Notes on Relational Investors
The articles discusses this week's firing of Home Depot CEO Bob Nardelli, the fruits of Ralph Whitworth of Relational Investors who was ruffling feathers at the company. The article has interesting background on Whitworth, saying his fund, "oversees about $7 billion, all invested in only nine companies that are chosen with an eye toward activist intervention." The fund has averaged a return of 25% over the last nine year.
There is an interesting quote in the article from James V. Pickett, chairman of Wendy’s, which was itself the target of activism from Pershing Square Capital and Nelson Peltz back in 2005. He said, "Most of the issues the activists raised at Wendy’s were things we were already dealing with. They just increased the intensity. But when they own that much of the company, you have to listen to them even if you don’t want to.”
Recent Notes on Relational Investors
Labels: HD, Home Depot, Nelson Peltz, Pershing Square Capital, Ralph Whitworth, Relational Investors, William Ackman
posted by Lon at 11:35 AM
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