US mega-cap companies are becoming targets for activist investors seeking turnarounds, according to the managers of the Miton US Opportunities fund.
Hugh Grieves (pictured) and Nick Ford said activists previously tended to circle smaller firms, but they are now gaining sufficient clout to turn their attention to mega caps. They gave the examples of Coca-Cola, General Electric (GE), Microsoft and McDonald's as companies which have been targeted by activists recently. However, they said this activity has been positive for investors as the activists are successfully managing to push through changes to company management, benefitting share prices. Grieves said: "In particular, we are seeing lots of large-cap consumer companies with...
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