hedge fund activism

Hedge fund activism involves investors known as hedge funds acquiring significant stakes in public companies and then actively engaging with management to influence company decisions. Their goal is often to improve performance, increase shareholder value, or reshape company strategies through actions like pushing for leadership changes, restructuring, or strategic shifts. While they seek to unlock value, their approaches can be assertive and sometimes controversial, prompting debate about their impact on long-term company health versus short-term gains. Ultimately, hedge fund activism is a way for investors to advocate for change and potentially enhance returns.