New York (HedgeCo.net) – In the 80s and 90s, people didn’t use the term activist investor, they called them corporate raiders and their tactics deserved the harsher moniker. The industry was so intriguing that inspired a number of movies such as Wall Street, Barbarians at the Gate and Other People’s Money. While these movies may have exaggerated the practices, today’s activist investors aren’t as likely to inspire a movie as the industry has changed considerably.

The Wall Street Journal featured a story over the weekend about how activist investors are even being welcomed in some corporate board rooms these days. The article cited the case of Nelson Peltz and his partner Ed Garden, co-founder with Peltz of the Trian Fund, and compared the attempted infiltration of the board of H. J. Heinz in 2006 and the more peaceful and amiable move that ended up placing Garden on the board of Pentair PLC. In 2006, Peltz was met with a campaign to keep him from being able to appoint a board member while Garden was seemingly welcomed by Pentair CEO Randall Hogan, and the two spoke several times before the appointment.

This new, less hostile practice doesn’t seem to be hurting the activity from activist investors as the article from the Journal pointed out that there have been 360 campaigns launched through mid-December and that is highest total of any year on record.

Rick Pendergraft
Research Analyst
HedgeCoVest