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Fund Times

Fund Times: New Fund Seeks Gains Via Corporate Change

ABC Fund vows to be a corporate activist; Eaton Vance buys a firm; and more.

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A proposed fund from a new, small New York firm says it will devote all of its energies and investments to corporate activism. The ABC Fund will invest in companies with suspect  governance and try to push them on the right path before they become the next Enron (ENRNQ) or  WorldCom (WCOEQ), according to a prospectus filed this week.

The fund's advisor, H Team Capital, proclaims it will be "on the lookout for companies where management or the company's board is not doing right by shareholders and to go in to those companies and try to change things for the better." It will attempt to accomplish this by talking to management, agitating for new leadership or board members, mounting proxy fights, or encouraging takeovers.

Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.