What Kind Of Company Does The Average Activist Target?

Activist investing splits opinions. On the one hand, activists argue that shaking up a company can produce better returns for investors, stop wasteful behavior and generally inspire a desire to do better among management. On the other hand, there are those that activist investors only care about short-term returns and their demands improve equity returns at the expense of jobs and long-term investment.

[activistinvesting]

Research shows the main criticisms regarding activism aren't backed up by the data. According to the Harvard Law, an analysis of 2,000 activist hedge fund interventions during the period of 1994 to 2007 showed that in the five years after an activist's arrival, operating performance relative to peers improves...