Go quietly

Though still primarily an American phenomenon, activist hedge funds are starting to crop up in Europe. Paul Harrison, director of Hermes Focus Asset Management Ltd.'s U.K. Small Companies Focus Fund, is pressing European firms to improve corporate governance, sell unpromising assets and restructure debt.

The fund, which has £120 million ($219 million) under management, showed a return of 26.7% in 2004. Harrison was CEO of Hi-Tec Sports plc, a company he helped restructure and take private, before launching the small companies fund in 2002. He spoke at Hermes' London office recently about what it takes to get U.K. conglomerates to streamline themselves.

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