Do more active hedge fund managing strategies generate higher returns than the less active ones? We develop a novel approach to measuring activeness for hedge funds by estimating the dynamics of risk exposure of a large sample of live and dead equity long-short funds. We find that higher...

This paper analyses the short- and long-term effects of shareholder activism by hedge funds in German publicly listed companies. Using a hand-collected sample of investments between 1999 and 2010, I show that hedge funds are largely ineffective in substantially affecting the firms they invest...