Activist investor
MarketsDefinition
Large shareholder who pushes management to make changes to unlock value: cost cuts, divestitures, capital returns, board changes. Famous activists: Carl Icahn, Bill Ackman, Elliott Management, Trian Partners.
~70% of activist campaigns deliver some shareholder demands. Historical alpha to following activist 13D filings: ~5-10% in the year after disclosure. Some companies pay "greenmail" to make activists go away.
~70% of activist campaigns deliver some shareholder demands. Historical alpha to following activist 13D filings: ~5-10% in the year after disclosure. Some companies pay "greenmail" to make activists go away.