A Hedge Fund Case Study. Would be extremely grateful if a tutor can do a 2000-word typed up solution!
1. Detail recent development in hedge fund activism and discuss the more prominent managers. Highlight the differences between activist hedge funds and the corporate raiders of the 1980s.
2. Describe the business model of MCDonald's (franchise, real estate and company-owned store). What were the advantages of its diversified strategy?
3. What forces were driving hedge fund activism? Where these legitimate concerns?
4. Consider the positive and negative impacts of hedge fund activism on corporate governance.
5. Evaluate Ackman's strategy with Wendy's and McDonalds's. Ackman's position in both was largely amassed through derivatives. Since his downside risk was lower than of other McDonald's shareholders, should management have devoted time to his concerns?
6. Asses the merits of McDonald's response to Ackma's demands. Was McDonald's simply a large bureaucracy unwilling to consider changes that might benefit it?
7. Discuss the possible reasons why Ackman revised his proposal. Highlight the specific changes after his initial proposal. Compare Ackman's plan with that of Vorando Realty Trust. What were the differences and advantages for each?