what is an activist investor

An activist investor is an individual or institutional investor who buys a significant minority stake in a publicly traded company to change how it is run. They seek to make significant changes to the target company and unlock perceived hidden value within it. Activist investors may focus on maximizing shareholder value or on the companys social responsibilities. They may engage in adversarial campaigns, but have also in some cases been able to acquire board seats with a formal proxy context. Activist investors may advertise their message out in various ways including postal mail, websites, and social media. Some well-known activist investors include Starboard Value, Ancora, Icahn, Elliot Management, and Third Point (Loeb) .