What is an Activist Investor, exactly?



hi it's Patti her shop marketplace an activist investor can be a very controversial character it some people see activist investors as angels other people think that they are that devil himself an activist investor is simply somebody who wants a companies to do something so badly that he or she is willing to go into the market and spend vast amounts of money accumulating a large stake in the company and then using that as leverage and threatening all sorts of disruption unless he or she gets what they want it's all about getting the attention of these guys here the company's board of directors all right because the more shares that an investor has the more the board feels it has to pay attention to what they say and the activist investor could have any one of a number of agendas right they might want to change the company's management they might want to get the company to do an acquisition or submit to a buyout they might just want to change the way the company spends its money and if you were an ordinary investor it's easy to see why you'd think of an activist investor as kind of angelic because they're always talking about increasing shareholder value which was means of course raising the stock price but let's not forget that activist investors are often some of the largest holders of a company's stock so if the stock price rises they stand to make a great deal of money that's kind of devilish just like angels or the devil activist investors have different styles in the way they do business some will negotiate directly with the board others will go to the press and in valle indulge in public shaming of the company and others will threaten to get elected to the company board in order to force the company's hands because let's face it the idea of this guy serving on your board helping you run your company without leave the very best of us very badly needing a drink




Comments
  1. An activist investor attacked my company because it was too healthy. They literally destroyed the company and are directly responsible for 20,000 being unemployed and and for what? Enriching the people that invested in their Hedge fund, which is less than 500 people. You basically have to be a billionaire to invest in that Hedge Fund in the first place. Now the price of product has gone up exponentially because there are less players in that market. So not only did they cause mass unemployment but now they’re causing inflation as well. These are evil people and they should be stopped. Their behavior should be considered antitrust however nobody has done anything to stop them.

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