Opportunity Partners

Posted: 18 Sep 2008

See all articles by Robin M. Greenwood

Robin M. Greenwood

Harvard Business School - Finance Unit; National Bureau of Economic Research (NBER)

James Quinn

Harvard University - Business School (HBS)

Date Written: September 18, 2008

Abstract

SUBJECT AREAS: Finance, Hedge funds, Investments, Tender offers, Behavioral economics, Behavioral finance.

Philip Goldstein, the principal in a growing hedge fund and prominent activist investor, has taken a position in a Mexico-based closed-end fund. Following a hard-fought proxy contest in which he advocated for management to eliminate the fund's substantial discount, Goldstein earns a seat on the board of directors. Now he and the board are faced with the decision of how best to "unlock value" in the fund by delivering Net Asset Value (NAV) to shareholders. The case, which provides rich detail on the workings of closed-end funds (CEFs), invites students to examine the trade-offs among liquidating the fund, converting it to an open-end fund, or carrying out a self-tender offer. It also raises topics of fund selection and investing in country-specific funds such as Mexico.

Suggested Citation

Greenwood, Robin M. and Quinn, James, Opportunity Partners (September 18, 2008). HBS Case No.: 9-208-097, Available at SSRN: https://ssrn.com/abstract=1270176

Robin M. Greenwood (Contact Author)

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States
617-495-6979 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

James Quinn

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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