Activist investors are starting earn the respect of U. S. institutional investors like mutual fund and state-run pension fund.
Investors like Carl Icahn, Nelson Peltz and Ralph Whitworth, who agitate for change in companies they consider as sub-par, are now getting noticed for their well-researched campaigns, according to financial observers.
These investors deal mostly with companies which in their analysis can provide higher shareholder returns through a change in strategy, or a change in management. And with institutional support, these activist investors have been emboldened to take on larger companies.
Financial experts say that the recent financial crisis made investors focus more on corporate performance. As the economy tries to recover, shareholders are exerting more pressure on companies that are not performing well.
In 2012, FactSet SharkWatch reported that there were 241 activist campaigns that sought changes targeting a change in company strategy or board as compared to 187 in 2009.
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