Does Hedge Fund Activism Create Value?
Using a data set of 139 events from 2006 to 2019, we demonstrate that announcements of hedge fund activism increases shareholder value in the short run. The abnormal return for the announcement of activism is approximately 6% over a [-10,+10] window. We find statistically significant abnormal returns both when the hedge fund purchases shares in the target firm, and when the hedge fund engages with