Acting up

Strategy: activist

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The challenging market conditions facing many companies have created a fertile ground for activist hedge funds.

The average activist fund gained 44.19% in 2009, according to Chicago-based Hedge Fund Research. That followed a difficult period for the strategy in 2008 when the average loss was 30%.

“Shareholder activism in 2009 was up on the previous year. That trend is likely to continue in 2010,” says Damien Park, managing partner of Hedge Fund Solutions, a consultancy which advi