Strategy Formulation Draft
November 5, 2020
Read 2 articles and Answer 2 questions briefly.
November 5, 2020
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Hedgefund activism

Please take a stand on the following question: Is hedge fund activism good for society?

Please provide a compelling analysis, based on data, to support your answer. This analysis should consider: 1) Is activism good for target firm common stock holders? 2) Is activism good for target firm bondholders? 3) Is activism good for employees of target firms? 4) Is activism good in a broader societal sense: governance, environment, social?

While this question is complex, I want you to choose a side based on your interpretation of the evidence that is available to you. There is not a correct answer, but like many complex issues, there are costs and benefits of activism that accrue to different stakeholders. I would like you to take a stand on your view of the net cost or benefit (benefit minus cost) that activism has on society.

You should use at least two sources of information to answer this question, which can be analyses by others (academic or otherwise), opinion pieces by others, or books by others. You do not need to attach your source material, but you should clearly reference the material (for example, with a web link if possible or a citation if the work is academic in nature).

Regardless of your exact answer, I will be grading you primarily on the strength of the analysis that you conduct and whether this analysis supports your final decision.

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