Atlanta Journal Constitution- Hedge funds can make things happen. They’ve been compared to the old corporate raiders, to shareholder activists, to the leveraged buyout firms of the 1980s. And they’ve often got a lot more muscle than any of their predecessors: an estimated $1.1 trillion in assets.<\/p>\n
Those huge stacks of money naturally look for something to do.<\/p>\n
Those who invest in a hedge fund want a big payoff. But unlike venture capital funds, whose investors also look for sizable returns, a hedge fund is generally not interested in the long haul.<\/p>\n
They see a company they think is undervalued, they buy a large portion of the firm’s stock, and they can put enormous pressure on its management to make changes \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009d their changes. When they see a couple of companies that they think would do well merged \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009d a couple of airline companies, say, in an industry ripe for consolidation \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009d they can do a lot to make it happen.<\/p>\n
If Pardus Capital Management is pushing Delta Air Lines to make a bid for United Airlines, well, that is what hedge funds do. Pardus has been an active investor in a number of companies, including Bally Total Fitness, Delphi and Visteon.<\/p>\n