Hedge Fund Hell: CSX Could Derail

An activist hedge fund that's been waging war against the board of CSX(CSX Quote) may be forced into retreat by the demands of its own investors.

After acquiring enough CSX shares to earn voting rights in a proxy dispute last year, The Children's Investment Fund Management, or TCI, could find itself in the awkward position of having to dump the railroad company's stock because of its own need for capital.

The result could be a blow to CSX's market value that is driven by insider shareholders rather than the company's fundamental performance -- exactly the opposite of what TCI set out to do. ...