shareholder activism

Shareholder activism: Why it should matter to you. Our top 5 activist stocks

What is shareholder activism instigated by activist investors?

View hedge funds’ top holdings in our guru portfolios.

The objective behind shareholder activism? 💰💰💰

Famous names in shareholder activism

How shareholder activism impacts retail investors

Improved corporate governance

Drive business performance

Activist investors typically target companies that exhibit areas of underperformance and that are not realizing their full potential. By pushing for changes, such as cost-cutting measures, new growth strategies, divestitures of non-core assets, or restructuring, they can help unlock value and improve the company’s financial performance. If successful, this leads to higher stock prices, benefiting all of the company’s shareholders, inclduing retail investors.

Influence on strategic decisions

Whereas retail investors often have limited power to influence corporate decisions directly, activist investors immediately have top management’s ear. Therefore, they can advocate for strategic decisions that align with the interests of all shareholders, including retail investors. This can include mergers and acquisitions, changes in business strategy, or even returning excess cash to shareholders through dividends or stock buybacks​

Shareholder activism techniques

Activist investors can employ both friendly and less friendly tactics. Supported by highly skilled legal teams, activist tactics range from private negotiations, public campaigns, proxy battles all the way to litigation to shape management’s decisions.

Our top 5 activist stocks right now

When reviewing top activist investors’ biggest bets, we applied a number quantitative and qualitative criteria in our research process. These are the most notable ones:

✔︎ Materiality: Holding makes up a very meaningful share of the activist investor’s portfolio

✔︎ Quality: Ziggma Stock Score > 80

✔︎ Continuity: No meaningful sale of shares by the activist investor in previous quarter

Free stock research, designed by professional investors.

AIG 📈

Third Point has demanded several strategic actions to enhance shareholder value and streamline the company’s operations. Third Point wants AIG to continue its transformation into a more focused insurance player by divesting non-core assets and improving its operational efficiency. Specifically, Third Point has supported AIG’s initiative to separate its life and retirement business, Corebridge Financial, from its property and casualty operations. This would turn it into more of a “pure-play” property and casualty insurer with the ultimate goal of unlocking value and improving the overall performance of AIG.

AIG top stock for activist investors

Pinterest – PINS  📈

Janus Henderson GroupJHG  📈

Trian’s angle on JHG

Green Brick PartnersGRBK  📈

Green Brick Partners is a diversified homebuilding and land development company based in Plano, Texas. The company operates primarily in Texas, Georgia, and Colorado, focusing on the development of residential communities.

Greenlight’s angle on GRBK

ChipotleCMG  📈

Pershing’s angle on CMG

Pershing Square, led by Bill Ackman, has pushed for various strategic and operational improvements to drive the company’s growth and enhance shareholder value. Notable initiatives are to improve Chipotle’s digital and delivery platforms, expand its menu, and optimize operational efficiency to boost profitability and customer satisfaction​

Moreover, Pershing Square has encouraged Chipotle to focus on expanding its footprint through opening new locations and enhancing its customer experience to maintain its competitive edge in the fast-casual dining market.

Chipotle earnings growth

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