But are Highfields, Atticus and others now the good
In the wake of Highfields Capital's brazen bid
to take over Circuit City last month, the rest of the investing
world seems to have woken up to hedge funds' fast-increasing
involvement - and clout - in corporate activist investing.
Business Week has even dubbed hedge funds the "new raiders,"
suggesting they are taking up the mantle of the 1980s buyout
But, in reality, the trend is both more benign and more
profound, and it is turning the traditional image of the hedge
fund industry on its head. Once viewed as a short-term
oriented, passive and potentially value-destroying force, hedge
funds can increasingly claim to be long-term, value-building
corporate citizens. Arguably, this is part of a broader trend
that is seeing once-renegade hedge funds gradually converge in
style and substance with the rest of the investment
To prove the point,...