Hedge fund activists are becoming more involved in the life of companies where they own a stake. When the company is a closed-end fund, some go as far as recommending changes in the investment strategy. The latest example is David Nierenberg, who runs Nierenberg Investment Management and who owns 7.8% of the Korea Equity Fund (KEF:NYSE – commentary – research – Cramer’s Take).
In a recent 13D filing with the Securities and Exchange Commission, Nierenberg urged Korea Equity to focus on micro- and small-cap growth companies in Korea or merge with the Korea Fund (KF:NYSE – commentary – research – Cramer’s Take). In a letter to William Barker, the lead director, Nierenberg says he wants those changes to take place before a shareholder meeting in the spring.
