Trending: Shareholder Activism

Activist investing has been on the rise since 2017 – with numerous, high-profile cases grabbing headlines. As this investment strategy gains mainstream attraction, financial advisors can use it to pursue strong, financial returns.

In case you need a quick refresher, activist investors target companies that have underperformed in recent times. When an activist investor obtains a substantial stake in the company’s equity, the market recognizes this as a signal that critical changes may be imminent. Once this news spreads, the company’s share price can rise in anticipation of a turnaround – due to the fact that activist investors often push for changes that they believe will create added value for the company’s shareholders. These changes include operational/strategic redirection, divestiture/spin-off, corporate governance shake-up, and capital allocation optimization.

But don't take our word for it. Numbers don't lie:

Shareholder activism has been a growing strategy in all sectors of the market – financial, industrial, healthcare, retail/consumer products, energy, real estate, and even agriculture.

To learn more about this trending strategy, and to find out how to harness its power for your own portfolio, visit our favorite event-driven advisors.

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