Despite the downturn in the economy and start market, activist investors are still making their market on what they consider to be undervalued assets. Here at Stockpickr.com, we track many of the latest activist situations for those interested in piggybacking these investors.

For example, Steel Partners, a $2 billion activist hedge fund based in San Francisco, now owns a 18.1% stake in Adaptec , a computer-based systems company that manages and protects client’s data and digital content.

Adaptec has a market cap of $371.75 million, yet its cash on the balance sheet is $457 million with $87 million in debt. In total, Adaptec has $3.749 in cash per share, even though its stock closed on Tuesday at just $2.95 per share.

Adaptec’s Internet balance sheet has attracted other top hedge funds, including D.E. Shaw, which owns a 5% stake in Adaptec, and Renaissance Technologies, which owns a 7.8% stake.

Perella Weinberg Partners has reduced its ownership in Air Transport Services Group (ATSG) by 5% since mid-October; it currently owns 7.12%. In a late October SEC filing, Perella Weinberg stated that it has engaged in discussions with Air Transport Services Group regarding business, operational and strategic alternatives to “maximize value for the shareholders in the wake of recent developments in the Company’s DHL related business.”

A short-term positive for the Air Transport Services Group is that the Nasdaq suspended the delisting process, citing that “NASDAQ has temporarily suspended the enforcement of its minimum share price rules because of extraordinary market conditions.”

Ramius Capital, an investment management firm that pursues low-volatility absolute returns that are also “non-market-directional” in nature, now owns 5.6% of Keynote Systems (KEYN), which develops and sells technology solutions and systems to “measure, test, assure and enhance the quality of service of the Internet and mobile communications." Keynote has $55 million in cash and $325,000 in debt.

David Einhorn’s Greenlight Capital sent a letter to MI Developments (MIM) demanding that the board examine alternative bridge financing options. Greenlight also questioned the independent of two appointed MI Developments directors, both of whom seem to have a relationship with a controlling MI Development shareholder.

Greenlight Capital owns 11.7% of MI Development, which operates as a real-estate development company, with its principal assets in the industrial and commercial real estate properties arena.

Temujin Fund announced its fundamental view that Ultratech (UTEK) is “substantially undervalued and that the company has the potential to more than quadruple revenues over the next few years.” Temujin also announced that it would continue to see additional value for Ultratech shareholders from an eventual sale of the company to a strategic buyer.

Ultratech, a semiconductor company that develops laser thermal equipment, has a $318 million market cap, $151 million in cash and $0 debt.

For more activist ideas, please check out the Latest Activist Situations portfolio and the latest activist filings from Barron’s.

Posted on Nov. 11, 2008