Activist hedge fund Starboard Value owns a little over 5% of AOL, and has been agitating since December for board changes and a refocused strategy. From a just-released 96-slide deck outlining its position, here’s Starboard’s problem with how AOL has handled The Huffington Post since acquiring it in February, 2011 for $315 million. Click to enlarge:
Two-year upside, in their view, is $38-$40, about 50% above current levels.
All losses are not equal and that should shape your thinking
The US economy has defied recession expectations, with the latest data showing a continued positive performance. Despite the cumulative 525 basis points of Federal Reserve rate hikes, the economy may still not be out of the woods, but signs are pointing to another positive performance for third-quarter real GDP.
It’s unusual to see both the Dispersion Index and the Implied Correlation Index up at the same time – but stock implied volatility is climbing faster than index-level implied volatility. This is likely because risk is being repriced.
