Relational Investors LLC's two activist asset management funds received about 25% and 33% increase in their fiscal year. This is because of its campaigns at Hewlett-Packard Co. and Timken Co gave shareholders reward in their investment said one source familiar with the performance.
The large-cap and mid-cap funds hold about US$5.5 billion investments. The companies calculated returns based on portfolios of publicly traded firms for the 12 months that ended last June 30 added the source. Relational Investors LLC is based in San Diego and was co-founded by Ralph Whitworth. The latter stated that the companies will undergo consolidation process and turn into a single fund.
Relational acquires stakes in companies that it considers undervalued. It lobbies the management and board for changes to boost investor returns. Gains in Hess Corp and Illinois Tool Works Inc also contributed to the large cap fund's 25% return said person. Ashland Inc and Abercrombie & Fitch Co boosted 33% returns for the mid-cap fund. Hewlett-Packard named Whitworth interim chairman last April. The company's shares have climbed by 74% this year.
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