Overactive

28 April 2009 By Richard Beales Follow @richardbeales1

The hedge fund fought hard and scrappily to get on the board of CSX, the US railway group. Now a weakened TCI has bailed. Such outcomes boost those who criticise activists as shortterm profitseekers. Unfortunately, they also risk silencing legitimate shareholder concerns.

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The Children's Investment Fund sold its 4.5% interest in CSX, the US railway group. TCI founder Chris Hohn, who owns a few shares personally, won't stand for reelection to the company's board.

TCI and another hedge fund succeeded last year in getting several candidates onto the CSX board last year. While the longrunning campaign was accompanied by a runup in the company's share price, the stock has since fallen 50% or more.

Another activist hedge fund, Harbinger Capital Partners, could be considering the sale of its 20% stake in the New York Times, according to news reports.

Bill Ackman of Pershing Square is asking shareholders of Target, the US retailer, to elect his director candidates over those proposed by the company.

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