Another week, another set of wins for activist investors.
On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale and, with a 9.9 percent stake in the company, appears to be in line for a pay day of about $230 million.
On Monday, enterprise tech company Riverbed Technology said it would sell itself to private equity firm Thoma Bravo for $21 a share. Hedge fund manager Elliott Associates, who also agitated for a sale, owns 9.6 percent of the company, meaning it will likely net about $102 million on the transaction.
Those deals add to the wins by activist hedge funds in 2014. Other notable successes this year include Pershing Square Capital Management's bet on Allergan (which was sold to Actavis and netted Bill Ackman's firm about $2.2 billion); Starboard Value's involvement in Darden Restaurants (it took over the board with all 12 seats, and the stock has gained since); and Icahn Enterprises' play in Family Dollar Stores (the company is in the process of being sold, and Icahn netted a reported $200 million profit).
"Without question, activists and suggestivists have been highlights amid a generally lackluster year for the industry," said Rick Teisch, director of research at hedge fund investor Liongate Capital Management in New York. "Several managers have generated returns far north of equities by pressing lethargic management and/or arming companies with creative ways to enhance shareholder value."