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Recent Investments By Top Activist Investors Include Bausch + Lomb, Twitter, BBBY & GameStop – Buyers Beware – Forbes

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Key Takeaways

Activist investors attempt to purchase enough shares in a company so that they can pressure management into changes they believe will improve shareholder value.
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Getty Images

Key Takeaways

  • Activist investors attempt to purchase enough shares in a company so that they can pressure management into changes they believe will improve shareholder value.
  • As seen with Ryan Cohen, the actions of activist investors can also hurt retail investors, particularly when they exit their position.
  • Paul Singer recently exited his Twitter position through his hedge fund, Elliott Management, while Elon Musk was attempting to acquire the company.

When looking for investment advice, we often turn to the experts to see what they’re doing in addition to performing our own analysis. One strategy that some investors use is to follow the recent investments of top activist investors.

These activist investors find publicly-traded companies they think could benefit from new initiatives, and attempt to put pressure on the management teams and executives running the show by purchasing large amounts of shares, hoping to catalyze new thinking and improve shareholder value. However, the changes aren’t always accepted by the current management, the motivation has been questionable at times, and we have even seen some hostile takeovers.

Let’s take a good, honest look at activist investing, the logic behind it, and recent investments from top players in this space.

What Do Activist Investors Do?

The goal of an activist investor is to initiate change in a company whose business practices or management they believe is underperforming or outdated. By purchasing enough of the company’s shares, they hope to leverage their position to pressure the management into making changes. These investors tend to be hedge fund managers, and they’ll sometimes look for a spot on the board of directors to try to replace the management team outright with new appointees.

Activist investors are looking for an underperforming business that they can acquire a big stake in to force changes. Sometimes the changes are accepted and sometimes there are issues.

Recent Investments By Top Activist Investors

We’re going to look at recent investments of a few key activist investors.

Carl Icahn

Carl Icahn is a well-known figure among activist shareholders. Some would even say that aside from Warren Buffett, Icahn is one of the most popular personalities on Wall Street. Icahn has been making headlines since the 1980s with hostile takeover attempts that earned him the moniker “corporate raider.”

These are some of the noteworthy investments from Icahn through Icahn Enterprises as of the SEC filings for …….

Source: https://www.forbes.com/sites/qai/2022/09/15/recent-investments-by-top-activist-investors-include-bausch–lomb-twitter-bbby–gamestopbuyers-beware/

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