A strategy pushing corporate change has gone
mainstream. What will happen to returns?
By Eric Baum
Longtime value investor Lawrence J.
Goldstein never planned to run a dedicated activist hedge fund,
a strategy associated with fiery rhetoric and aggressive
attacks on corporate management. But that was before the
founder of Santa Monica Partners, which manages $100 million of
hedge fund assets, received a challenge from William Steiner,
the legendary activist who was impressed by Goldsteins
campaign to reform The First Years, a baby products retailer
that is now part of The RC2 Corp. in Oakbrook, Ill.
I opened my mail one afternoon, and a check for $3
million fell out, Goldstein says, adding that the money,
which came from Steiner, was the beginning of his activist
Santa Monica Opportunity Fund.
Goldstein is among the legions of managers who have moved
into the activist camp in recent...