Using a large sample of loans initiated by firms targeted by hedge fund activists during 1994-2008, we show that hedge fund activism has significant impacts on firms' bank loan contracts. After the targeting announcement, and relative to firms that are not targeted, the targeted firms pay...

Compared to mutual funds, hedge funds prefer smaller, opaque value securities, and have higher turnover and more active share bets. Decomposing returns into three components, we find that hedge funds are better than mutual funds at stock picking by only 1.32% per year on a value-weighted basis,...