Category: Real Assets

Companies are rushing to adopt shareholder rights plans known as “poison pills” to fend off activist hedge funds looking to exploit the pandemic sell-off, according to a Reuters report citing data from FactSet and Deal Point Data. The plans prevent other companies and investors from building stakes above a certain threshold and are not liked by shareholders and advisory firms like ISS and Glass Lewis because they dilute ownership. "Hedge funds don't see an economic crisis of epic proportions, they see an opportunity," the report quoted Kai Liekefett, co-chair of the shareholder activism practice at law firm Sidley Austin, as saying.

Pension schemes “whose funding levels have been impacted, are likely to take on more portfolio risk once the dust settles” according to a note by Mathias Neidert, Head of Public Markets at investment manager selection specialist bfinance. Only a minority (11%) of investors who responded to a snap poll by the …