Is A Down Market Really Bleak For Activist Funds?

Is A Down Market Really Bleak For Activist Funds? by Activist Insights

Recent months have seen several commentators express the view that a downward-trending market will harm activist funds more than most. With 2016 now in full flow and the S&P 500 down 4% over two months, Activist Insight opted to look at whether the market has a major impact on activism.

To answer the question, Activist Insight undertook an analysis of its unique index of dedicated activist funds, the Activist Insight Index (full years: 2010-2015).

As detailed below, the Activist Insight Index outperformed the S&P 500 in months where the latter posted a negative return, but underperformed when the S&P 500 Index was positive at the month-end. The data...