On March 10, CWA hosted a panel at the Council of Institutional Investors Spring conference exposing how hedge fund "activism" boosts short-term stock prices at the expense of workers, customers, and long-term investors.
Professor Mark Desjardine presented data-driven research showing that hedge funds make demands like stock buybacks and cost cuts that boost a company's stock price in the short-term, but harm the company's long-term prospects.
CWA Local 6222 Vice President Belinda Aguilar, an AT&T Mobility worker, explained how hedge fund Elliott Management's attack on AT&T has led to more outsourcing of good retail jobs to non-union authorized dealers.
Investigative journalist Julie Reynolds detailed how Alden Global Capital hollowed out local newspapers, even turning off hot water at the Monterey Herald and defaulting on rent, all while extracting cash for executives and unrelated investments. The panel challenged conventional Wall Street wisdom and pointed the way forward for long-term investors to reject harmful hedge fund tactics.