Activist hedge fund managers that demanded a management change by the...

Activist hedge fund managers that demanded a management change by the companies they targeted were successful 75% of the time, according to a new study by the shareholder activist group of investment bank Morgan Joseph. In a study of 94 campaigns waged by 29 activist hedge fund managers between January 2004 and March 2006, Morgan Joseph researchers found a 70% success rate for hedge funds that sought a presence on a company's board. Among other success rates, 63% made managements drop defensive takeover mechanisms; 55% forced a company sale; 50% gained a special stock dividend; 47% effected a share repurchase; and 44% managed to block a merger or acquisition bid.