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What is an activist shareholder and why should you care? An activist shareholder is a commercial shareholder of a company who attempts to use his/her equity share in the business to achieve specific objectives. The primary goal of most activist shareholders is bringing about change in or for the corporation. Other non-financial objectives can also be the conversion of existing businesses into green businesses or the deployment of energy-efficient products in commercial areas.agency are grouped together by the advocacy groups they support. There are many national and local grass-roots organizations that advocate for specific causes such as animal rights, ending corporate greed, worker rights, and the redress of economic injustice. A few groups focus on particular industries such as genetically modified food, alternative energy, or the protection of the ozone layer. Activist investors are extremely active as public companies come under scrutiny for their political activities and management policies.Activist investors are not necessarily new to the business world. Historically, some of the most successful entrepreneurs were regular people with ordinary ideas. Some of these pioneers were later known as direct investors. agency of investor typically buys shares of a company without having a direct interest or stake in the business. These types of investors are often referred to as community or institutional investors. They are able to purchase large quantities of shares without ever wanting to touch the business themselves.An innovative group of hedge fund activists has identified companies that they believe will experience significant share price appreciation in the coming years. These activists are called targets. agency do not want to own a whole bunch of shares. Instead, they are looking for a targeted list of companies that they can actively and aggressively attempt to influence or change the management of. They use a variety of activist investor strategies to accomplish this goal.One of the many different activist investor strategies involves taking a target company and working to change management and ownership structure of the company. In many cases, the company's management is unwilling to negotiate with the activists. Instead, the company is targeted for a specific issue. For agency , a particular corporation may be targeted for a certain law or policy change that is perceived as harmful to the environment or to specific industries.Activist groups also use a wide range of different tactics to make their point about certain industries or laws. For example, some groups focus on putting pressure on companies by participating in large scale street demonstrations. Others make use of viral marketing schemes, writing articles or blogs or creating viral videos to bring about change in companies. Hedge funds have also developed their own hybrid form of activist investments, sometimes known as green hedge funds.Some other types of activists include individual stock investors and large institutional investors, such as hedge funds. Activists can also work at the institutional side of the business world as investment advisors. However, many of these types of investors work as representatives of groups rather than as individual traders. What is an activist investor strategy can vary based upon the type of investment you are looking to pursue. Hedge funds are an excellent example of this.In short, the goal of what is an activist investor is to pressure corporations to change their practices or policies, or at least having a change in perception that is public. If the corporation resists change or seems unwilling to comply, it may turn to traditional forms of investment, such as mutual funds or blue chip stocks. Activist investing can be used to make more money through short selling stocks in the short term, but should not be relied upon to hold the stock in the long term. As such, it should be used as a part of a broader portfolio.