HIX - EHI: Activist Buy With High Probability Of Payoff Yield Of 9.4%

We've highlighted these activist plays in the past as they tend to be great ways to generate alpha when analyzed correctly. This is where the large shareholder, typically a hedge fund or other asset manager, is attempting to exploit the discount. They can do this by gaining access to the boards to promote change or by shareholder vote through the proxy process.

The objective here is to capture that large discount for alpha generation. Most of the time, they enter funds that they believe are cheap and with underlying exposure that they would want in