In story about how William Ackman protege Mick McGuire's activist hedge fund Marcato Capital Management LP’s has lost more than 90% of its assets due to losses and client redemptions, the WSJ reports that:
Activist hedge funds are up 9.3% this year through July, according to HFR, though they are trailing the S&P 500, which gained 20%.
In other words, a basic index fund would outperform shareholder activism. So why would we think activist investors are worth listening to? Or that we should encourage shareholder activism?
