A number of high-profile "shareholder activists," from Carl Icahn to Nelson Peltz, have set their sights on companies this year. The strategy: Buy big stakes and then agitate for strategic changes to boost shareholder value, from small operational tweaks to selling the entire company.
Does it make sense for ordinary investors to try to go along for the ride?
In short, maybe. Piggybacking on activists' investments can indeed pay off, say researchers, but their strategies can be difficult to follow and fraught with risk.
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