PT - JOURNAL ARTICLE AU - John Armour AU - Brian Cheffins TI - The Rise and Fall (?) of Shareholder Activism by<br/>Hedge Funds AID - 10.3905/jai.2012.14.3.017 DP - 2011 Dec 31 TA - The Journal of Alternative Investments PG - 17--27 VI - 14 IP - 3 4099 - https://pm-research.com/content/14/3/17.short 4100 - https://pm-research.com/content/14/3/17.full AB - Shareholder activism by hedge funds became a major corporate governance phenomenon in the United States in the 2000s. This article puts the trend into context by introducing a heuristic device referred to as “the market for corporate influence” to distinguish the ex ante-oriented “offensive” brand of activism hedge funds engage in from the ex post-oriented “defensive” activism carried out by mutual funds and pension funds. This article traces the rise of hedge fund activism and anticipates future developments, arguing in so doing that despite the blow the 2008 financial crisis dealt to hedge funds, their interventions will remain an important element of U.S. corporate governance going forward.TOPICS: ESG investing, mutual funds/passive investing/indexing, pension funds, financial crises and financial market history