Stewardship

Hedge funds have lately emerged as powerful players in the corporate world, increasingly using the weight of their investments to agitate for change in company policies and management.

Most famously, Edward Lampert of ESL Partners rescued Kmart Holding Corp. from bankruptcy in 2003, then engineered its stunning $11 billion takeover of Sears, Roebuck & Co. last year. Highfields Capital Management offered $3.25 billion for electronics retailer Circuit City Stores in February, and Appaloosa Management made a $1.5

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