Keep Activist Hedge Fund Wolves At Bay From Mining’s Portals

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According to Mineweb.com, today, a new breed of wolf hovers around corporate mining’s portal: the professional money manager operating as an activist hedge fund.

Are today’s activist hedge funds the wolves at mining’s portals?

...In the past, the strategy of the professional investor was the buyout, and taking action to change the management and operations in order to unlock value. Today, however, a new breed of wolf hovers around corporate mining’s portal: the professional money manager operating as an activist hedge fund.

Most activist hedge funds do not want to own or even control a mining company, but rather seek to purchase a block of shares to influence top management and benefit from presumed increases in share profits. Using this strategy, activist investors try to hold less than 20% of a company to limit their risk and avoid triggering poison pills.

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