July 10, 2006
Hedge Fund’s purchase of shares spurs Rite Aid rise
Shares of drugstore chain Rite Aid Corp. rose in midday trading on Monday after hedge fund Tudor Investments disclosed it has been buying up shares. This information has spurred investor speculation about a restructuring, a recapitalization or a sale of the company. Chron.com reports:
The market often follows the lead of hedge funds because investors see hedge funds as smart money. Also, hedge funds often buy large positions in companies and angle for change to goose share prices. Tudor's acquisition of Rite Aid shares may be leading investors to speculate about mergers, restructuring or another technique hedge funds typically demand to boost stock prices.
Read more: Rite Aid Rises As Hedge Fund Buys Shares
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