Thursday, 16 July 2015

Carl Icahn and Larry Fink at Delivering Alpha 2015 in New York.

Icahn says he has "no idea" where equities will end up this year. "We have the same problems we saw in 2007." He also said that, when high yield goes down, there will be nobody to buy.

Carl Icahn and Larry Fink at Delivering Alpha 2015 in New York.

The fifth annual Delivering Alpha conference concluded on Wednesday in New York City with BlackRock CEO Larry Fink and Activist Investor Carl Icahn debating activist investing.

Fink said that, while activism did have an important role in the financial world, many have also pushed companies toward buying back increasing amounts of stock. He added that this could be holding back the U.S. economy.

On the other hand, Icahn said that BlackRock's role in ETFs, along with the Federal Reserve, were pushing the equities market towards a cliff.


Activist plays an important role.

Investors should be interested in the proper return they expect from the companies they invested in.

He will ask or write to the management on:

What is your strategy in growing your company's business over the long term?

What is your long term strategy regarding growing organically or through acquisition?

What is your strategy regarding share buyback and dividends?

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