Activist Investors: What's the Point?

Starbucks and Coca-Cola Settle with Dissidents

WEB Starbucks and Coca-Cola recently settled with activist investors who had built up significant stakes in the companies. These hedge funds typically purchase large minority stakes in publicly traded companies and pressure management to make changes that they believe will increase shareholder value.

Shaking Things Up

Activist investors often target companies they believe are underperforming or have untapped potential. They may advocate for changes such as selling off underperforming assets, reducing costs, or implementing new strategies. Their goal is to make the company more profitable, which can lead to increased stock prices and higher returns for all shareholders.