Activist Investor

An activist investor buys a meaningful stake in a public company specifically to pressure management into changes, such as cutting costs, selling a division, replacing executives, or returning cash to shareholders. Activists typically disclose their stake and their demands publicly to build support from other shareholders.

A single activist rarely owns enough of a company to force a vote alone; the strategy depends on persuading index funds and other institutional holders to side with them, which is why activist campaigns are fought as much in public letters and proxy materials as behind closed doors.