Activist investing exploded this year, from Olive Garden to Sotheby’s and everything in between. Here’s a look at how companies targeted by activist hedge funds performed in the market after the fact.
Brendan Mcdermid / Reuters
What happened? Throughout the first few months of the year, activist hedge fund Eminence Capital pushed hard for Men's Wearhouse to acquire rival suit retailer JoS. A. Bank. The deal faced a lot of pushback from that latter, but eventually closed in March for around $ 1.8 billion, netting Eminence a hefty profit.
Men's Wearhouse in 2014.
How has the stock done? Not well, actually. The day the deal was announced, shares of Men's Wearhouse spiked at $ 57.14 each, but have steadily declined in the nearly nine months since, besides a brief period this summer when they stayed in the high $ 50 range. Today Men's Wearhouse is trading around $ 40 per share.