Carl Icahn, David Einhorn, Bill Ackman, Nelson Peltz, Boone Pickens… do those names ring a bell? If they do, you probably know what this article is all about, but for the benefit of all readers, these guys (who also happen to be billionaires) are what the financial industry labels as activist investors.
A simple but powerful example of activism in action was when Carl Icahn tweeted that he believed Apple was grossly undervalued and the stock instantly jumped US$8 billion in value for all shareholders.
Since joining Twitter, Icahn has been using it as a platform to announce his new targets and almost all the time, the target firm in question would experience the “Icahn Lift” — its share price rocketing due to Icahn’s reputation for buying undervalued companies and enacting change to make it more competitive. And it’s not just Icahn, this happens with most other activists ......