What is an activist hedge fund?
An activist hedge fund is a fund that engages in shareholder activism by pressuring a company's management to take certain decisions that unlock shareholder value.
Activist hedge funds typically purchase large amounts of a company's stock and strive to get seats on the company's board of directors. This gives them a say in how the company is managed, and they will often attempt to steer the company in a direction that they believe will increase the stock's value.
An activist fund is an institution that purchases a large stake in a stock and then lobbies for changes in the company's strategy or structure. This is often done to increase the share's value and achieve a profit for the fund.