Ackman, Icahn and Their Pals Are Keepers

Hedge funds that target troubled corporations have had a great run. Can it last?

He's not done yet.

Photographer: Peter Foley/Bloomberg

It’s a fun time to be an activist hedge-fund manager. Bill Ackman’s Pershing Square International topped Bloomberg Markets’ list of the top-performing hedge funds in 2014. Carl Icahn hasn’t come in below seventh place in the last five Forbes annual rankings of the highest-paid hedge-fund managers (his average income over that stretch: $1.6 billion a year). Nelson Peltz is making headlines with his high-profile campaign to break up DuPont, a corporate giant with a 213-year history.

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