The War Chests that Hedge Fund Managers Are Building

Co-investment vehicles are a way of keeping investors happy while locking up their capital in illiquid strategies.

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Lionel Erdely, Investcorp

Barry Rosenstein of Jana Partners, William Ackman of Pershing Square Capital Management, Nelson Peltz of Trian Partners and Jeffrey Smith of Starboard Value have a fairly easy way to gather ownership stakes outside their main portfolios when they think a company needs an overhaul.

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