Book Recommendation: Extreme Value Hedging – Larry Sarbit
Activist hedge fund managers represent a small part of the $1.5 trillion hedge fund industry, but their approach is causing a stir among traditional managers and the investment community because they are shaking up the corporate establishment and making money for their investors. These types of managers are here to stay and Extreme Value Hedging tells the story of their rise to power in the U.S. and how they are spreading their influential gospel around the globe to places like China, Ukraine, South Korea and Sweden. Author Ronald D. Orol has a unique understanding of this world and through this book he shares his unparalleled insights in an easy to comprehend manner. He discusses everything from activist investor efforts to breakup the clubby insider world of corporate boardrooms to their deal-making or breaking pressure tactics and courtroom battles. Orol skillfully makes his case for each subject by offering revelations and examples from insiders like Ralph Whitworth, (Relational Investors), Guy Wyser-Pratte, (Wyser-Pratte Management), Mark Schwarz, (Newcastle Capital Group LLC), Robert Chapman (Chapman Capital), Phillip Goldstein (Opportunity Partners), Jeffrey Ubben (ValueAct Capital), Jeffrey M. Solomon (Ramius Capital Group LLC), Michael Van Biema (Van Biema Value Partners), Eric Rosenfeld (Crescendo Partners), Lars Förberg (Cevian Capital) and Emanuel Pearlman (Liberation Investment Group), among many, many others.
Gates Capital Management's Excess Cash Flow (ECF) Value Funds have returned 14.5% net over the past 25 years, and in 2021, the fund manager continued to outperform. Due to an "absence of large mistakes" during the year, coupled with an "attractive environment for corporate events," the group's flagship ECF Value Fund, L.P returned 32.7% last Read More
From the Inside Flap
Activist hedge fund managers represent a small part of the $1.5 trillion hedge fund industry, yet the philosophy that drives them to earn above-average returns has caused a stir within the investment community and the corporate world. These types of managers are changing the investing landscape—from banking and corporate finance to management—and Extreme Value Hedging tells the story of their rise to power in the United States and the spread of their influence around the globe.
Despite their well-publicized status, very little is truly known about activist hedge funds. But author Ronald Orol has a unique understanding of this world, and with Extreme Value Hedging, he shares his unparalleled insights on how the individuals behind these funds are bucking the traditionally passive investor approach by actively initiating change that will improve the share value of today’s small, mid-size, and large corporations. Orol discusses everything from activist investor efforts to break up the clubby insider world of corporate boardrooms; to their deal-making or -breaking pressure tactics and courtroom battles.
Divided into three comprehensive parts, Extreme Value Hedging takes you inside a world that few have ever seen. Through the revelations and examples of those on the front lines of this movement, you’ll quickly discover where activists are coming from and how they operate; how institutional investors work with or against activists; and what the future may hold for them in places such as Russia, South Korea, and Japan.
You’ll hear from high-profile activist investors, such as Guy Wyser-Pratte, Ralph Whitworth, Lars Förberg, Phillip Goldstein, and Robert Chapman. With precision and clarity, Orol explains how the presence of activists is changing the way corporate directors and executives manage businesses and think about major deals.
Filled with distinct details of the emergence, development, and expansion of this discipline, Extreme Value Hedging provides you with an engaging account of how activist hedge fund managers are implementing innovative strategies to improve the shareholder value of target companies and achieve robust returns for their clients in the process.
Whether you want to learn how to profit from this alternative investment strategy or understand how activist investors continue to outperform the market, Extreme Value Hedging is the book for you.