Investor Activism Has Fallen Off a Cliff, Lazard's Rossman Says

The video discusses the mixed performance of hedge funds in 2020, highlighting a decline in activism campaigns due to market uncertainty and COVID-19. Activists have focused on existing campaigns, leading to board seat wins, while new entrants and SPACs have emerged as significant trends. Opportunities in the debt market are explored, with a focus on sectors like industrials and technology for M&A post-COVID.

What was the primary reason for the decline in activism campaigns in the United States during the first half of 2020?

• Regulatory changes

• Lack of investment opportunities

• COVID-19 and economic uncertainty

• Increased market competition

How did hedge funds adapt their strategies in response to the market conditions caused by COVID-19?

• By increasing short positions

• By focusing on existing campaigns

• By diversifying into real estate

• By launching new campaigns

What trend has been observed in the number of new entrants in the activist hedge fund space?

• A shift towards traditional investment strategies

• No change in the number of new entrants

• An increase in new entrants

• A decrease in new entrants

What is a SPAC and why has it become popular among hedge funds?

• A type of mutual fund; due to high returns

• A special purpose acquisition company; as an alternative to traditional IPOs

• A government bond; for its stability

• A real estate investment trust; for its tax benefits

Which sectors are activists likely to avoid in the near future due to the pandemic?

• Energy and utilities

• Industrials and manufacturing

• Travel, real estate, and retail

• Technology and healthcare

What opportunity does the volatility in the credit market provide for activists?

• Increased regulatory oversight

• Quick returns in days or weeks

• Long-term investment stability

• Higher interest rates

What is the expected trend in M&A activity as the market recovers from COVID-19?

• Stability in M&A activity

• A shift towards smaller deals

• A resurgence in M&A activity

• A decline in M&A activity