Activism Following

Shareholder Activists build up a stake in a publicly traded company and soon after engage with the management in order to push through their demands. Thus, by engaging with the management (and forcing them to act, for example by initiating a proxy fight) they seek to unlock shareholder value. Academic literature proved that shareholder activists unlock substantial shareholder value around the announcement date. The aim of this strategy is to closely track shareholder activists engagements and follow these activists by buying stakes of the target company (or shorting the target company, should it be a short attack by an activist).