Actively Tracking Activists

Activist investors have been getting a lot of press lately. Parting from the secretive behavior common to hedge funds, many activists actually rely on media to amplify their claims, help influence public opinion and in turn drive profits on their positions. The attention has been well-deserved as of late as many campaigns have been successful in bringing about change in target companies, not to mention tidy profits for activists and their clients. However, this recent trend has been the benefactor of a persistent bull market, and risks do exist in this strategy, the main one being significant illiquidity.