Question
For the Final Exam, I'm going to ask you to put everything you've learned as a Finance major to the test. I want you to
For the Final Exam, I'm going to ask you to put everything you've learned as a Finance major to the test. I want you to research activist hedge fund company Starboard Value's methodologies (I've provided some valuable links below) and to find a company that you think is a prime target for major restructuring like Yahoo and Olive Garden (two of Starboard's more recent and famoustakevers).
Why this project:
1. You'll be putting everything you've learned about Finance into one project.
2. Career-wise, an activist hedge fund like Starboard would prove to be a very interesting company to work for (if you can get in the door). If you understand the company's methodologies, it will increase the odds of getting hired.
3. Even if you don't join an activist hedge fund company, being able to findgreat investment opportunities "diamonds in the rough" can be used almost anywhere (i.e. potential M & A candidate, investment in a company, stock pick, etc.)
Here's the assignment:
1. Research and discuss Starboard's criteria and methodology. (I have included links in this folder for your perusal.) How do they select a company? What are its criteria? How do they go about their process of exerting control over the company.
2. You are a Senior Analyst working there. Find and investigate a potential company you think would be a suitable target for Starboard. What characteristics make the target company a good candidate based off your research? Conversely, what might make them not such a good candidate?
3. Assuming you gained a strong position in the company's equity, what problems do you see with the company that need to be overcome. What corrective actions would you suggest the company make?
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