Hedge Funds and Activists: Positioning and Campaigns — 2026-09-05
Elliott Management has taken a significant stake in Deutsche Telekom to oppose the proposed T-Mobile US merger, sending shares of both companies higher. Meanwhile, Indian regulators have commenced hearings to recover gains from short-selling trades linked to the 2023 Hindenburg Research report on the Adani Group, and hedge fund performance data for August shows Citadel leading with modest gains while others saw mixed results.
Hedge Funds and Activists: Positioning and Campaigns — 2026-09-05
Top developments
Elliott Management Opposes Deutsche Telekom’s T-Mobile Merger
On September 2, 2026, activist investor Elliott Management revealed a stake in Deutsche Telekom with the explicit goal of blocking CEO Tim Hottges’ $300 billion plan to merge with T-Mobile US. The news caused shares of both Deutsche Telekom and T-Mobile US to rise, reflecting market anticipation that the merger might be abandoned or significantly restructured. This move highlights the continued use of high-stakes M&A opposition as a primary lever for major activist funds.
SEBI Begins Hearings on Hindenburg-Linked Short-Selling Profits
The Securities and Exchange Board of India (SEBI) has initiated hearings to recover profits from trades suspected of being based on prior knowledge of Hindenburg Research’s 2023 report on the Adani Group. Regulators are specifically targeting US-based Kingdon Capital Management, which allegedly built short positions in Adani-related stocks through a Mauritius-based fund before the report’s publication. This action signals a more aggressive stance by Indian regulators against cross-border short-selling activities deemed manipulative or based on insider information.
August Hedge Fund Performance: Citadel Leads Amidst Volatility
In a quiet August, multistrategy hedge funds showed mixed performance. Ken Griffin’s Citadel posted a 0.1% gain, bringing its year-to-date return to 12.1%. In contrast, other major firms like Millennium and Point72, which had strong first-half performances, saw their momentum slow or reverse slightly during the month. The data underscores the resilience of top-tier multistrategy funds even in periods of low directional market movement.
Korean Retail Investors Struggle with Activist Following
A recent analysis by Hankyung reveals that only 4 out of 10 retail investors who followed Korean activist fund recommendations achieved positive returns over the measured period. This statistic challenges the prevailing narrative that mimicking activist moves is a reliable retail strategy, suggesting that timing and execution remain significant hurdles for individual investors attempting to leverage activist campaigns for profit.
Local view
Japan: Japanese media is focusing heavily on regulatory changes affecting shareholder activism. Alterna reported on September 1 that proposals by the Ministry of Justice to tighten requirements for shareholder proposal rights are being criticized as "regressive" by sustainability and governance advocates. The debate centers on whether these changes aim to exclude activists or merely streamline the process, with local stakeholders warning it could hinder corporate governance improvements.
Korea: South Korean outlets are tracking the evolution of "K-Activism." Bloter highlighted the rise of new fund managers like Kim Ji-yeol, formerly of Mirae Asset, who are pioneering a "Quad-style activism" focused on constructive dialogue rather than hostile takeovers. Additionally, Businesskorea reported on Singapore-based Flashlight Capital Partners' aggressive proposal to buy Samsung's stake in S-1 Corp, illustrating the increasing involvement of foreign PEFs in Korean conglomerate restructuring.
Context & numbers
- Citadel YTD Return: 12.1% as of end-August 2026.
- Millennium YTD Return: Up 8.2% through July, with August performance contributing to a slight cooling in momentum compared to its 10.5% H1 pace.
- Point72 YTD Return: Down 3.3% in July, impacting its overall 2026 trajectory after a strong first half.
- Retail Success Rate (Korea): 40% of retail investors following activist picks made profits.
On the radar
- Upcoming Proxy Contests: The Activist Investor Substack is tracking five pending proxy contests for 2026 and 2027, indicating a pipeline of future boardroom battles despite the current focus on M&A opposition.
- Japan Regulatory Watch: Monitor the finalization of Japan's shareholder proposal rule changes, which could impact the ability of activists like Engine Capital and others to file proposals in upcoming AGMs.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
Powered by
