When Sachem Head Capital Management enters a new position, the stock normally doubles in two years. That was the largest return among 10 major activist investors, The Edge Consulting Group, a special situations research firm, told clients this week.
A disastrous outlook for 2020 earnings is likely to put increased emphasis on value investing, said The Edge Chief Executive Officer Jim Osman. “Investors should look at catalyst investing going forward because, for the next few quarters, earnings are basically unknown,” he said in an interview. “So how are you buying any stock right now on the basis of earnings? Activism, spinoffs, anything that is going to move the stock without relying on the earnings per se.”