On March 4, 2011, Cowen's Ramius announced that it is in the process of spinning off its shareholder activist business into a new independent hedge fund, called Starboard Value LP. The spin off is expected to be completed by March 31, 2011 and will allow Starboard to focus more on its core investment strategy and better attract capital. The hedge fund will be managed by CEO and CIO Jeff Smith, Mark Mitchell, and Peter Feld. At the same time, Ramius--which will own a significant minority interest in the stand-alone hedge fund--will continue to provide "operations, fund legal, fund accounting, technology, and marketing support" services, according to Jeff Smith. The shareholder activist has generated substantial alpha thus far and is currently involved in several proxy fights.
President and CEO of Ramius, Thomas Strauss, stated that the activist will be in an even "better position, managed as a stand-alone entity, to attract additional capital from institutional investors seeking an experienced, accomplished, and professional team with a proven methodology using shareholder activism".
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| Jeff Smith, CEO and CIO Starboard Value |
Mark Mitchell is currently a Partner Managing Director and co-leader of Ramius Value and Opportunity Fund. Mitchell will become a co-leader of Starboard Value LP.
Peter Feld is a Managing Director at Ramius LLC. Feld will become a co-leader of Starboard Value LP.
Posted by David Schatz
Posted by David Schatz
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