BlackRock and Vanguard Step Into Activist Investor Ring

Back in the 1970s and 1980s, “activist investors” were also called corporate raiders.  Essentially, these large investors would buy up a company, strip it for parts and sell off the assets.  Today, activist investors take on a new, less destructive way to achieve superior returns and hold management accountable.  Carl Icahn, an activist investor, is now a household name for his outstanding track record, from Dow Chemical to Apple, by getting management to focus on shareholder value and making operations efficient.  Bill Ackman and Daniel Loeb are two other very successful activist investors who have achieved very impressive returns compared to peers over the past several years.  Now, it appears the “activist strategy” is being adopted by two of...