Activist Investor

An activist investor is an individual, group, or institutional investor (such as a hedge fund) that acquires a significant minority stake in a publicly traded company to influence its management, operations, or strategic direction. Their goal is often to unlock shareholder value by advocating for changes they believe will improve the company's performance.

What You Need To Know

Tactics used by activist investors include proxy contests, public campaigns, shareholder proposals, negotiations with management, and possible legal/litigation pressure.