Should you invest with the activists?

Some companies can get a boost from being bought by shareholder activists. Matthew Partridge explains why and how you can benefit.

Activist investors fund managers or wealthy private individuals who take an active role in the affairs and running of a company that they invest in tend to polarise opinion. Some view them as little more than short-termist asset strippers, more concerned with the next quarter's profits, even if this means acting against the interests of customers and workers, or damaging the long-term health of the company.

Several American politicians, including presidential candidate Bernie Sanders, are keen to introduce legislation to rein activists in, by forcing them to disclose stakes in companies at much lower levels than they currently do, and making it harder for them to co-ordinate activity with other investors.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri