Fund Directions Quotes Adam Finerman on Closed-End Fund Defenses Against Activists
Fund Directions (subscription required) recently quoted Olshan Corporate partner Adam Finerman on tactics being used by closed-end fund boards of directors and managers to repel an activist campaign and entrench themselves. The strategies employed are becoming more radical and in many cases have no legitimate purpose other than to block the valid exercise of stockholder choice and entrench existing directors. “Things have seriously ratcheted up in the past six to 12 months,” Mr. Finerman commented. Activism on closed-end funds has increased recently, in many cases due to the significant increase of discounts to net asset value at many closed-end funds.