Hedge Funds Are New Sheriffs of Boardroom

Wednesday, December 14th, 2005

According to Alan Murray, Hedge Funds Are New Sheriffs of Boardroom:

Hedge funds are the counterweight. While Sarbanes-Oxley forced companies to play defense, hedge funds force them to play offense. Any risk-averse company that wants to sit on a big pile of cash waiting for a rainy day is likely to find itself under quick attack from these fast-moving pools of money that will come in, buy up stock, and agitate for change. The hedge funds have become the new sheriffs of the boardroom. But they are less concerned with legal processes and accounting procedures and more with returns to shareholders.

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