Professor of Finance
This article provides an overview of anomalous price behaviour around repurchase methods such as fixed price tender offers, private repurchases and open market buyback programs.All these anomalies allow investors to earn excess returns, i.e. beat the market on the basis of publicly available information. All anomalies have one characteristic : markets tend to be sceptical about the managers ability to time the market, i.e. to buy back stocks when they are cheap.The author provides some evidence why such anomalies may persist, in spite of the fact that they are widely publicized in the literature.