The activist investor has always been a prominent player in the investment trust universe but, post-credit crunch, membership to join the ‘dark arts' club has been on the rise.
Arbitrageurs aim to unlock value in companies trading on distressed valuations and, with the crisis depleting share prices across the board, activists are sharpening their claws. These investors can be likened to the Dementors found in the magical world of Harry Potter – creatures seeking to exploit weaknesses for their own gain. Fortunately, in contrast to the JK Rowling novels, no blood is spilt when activists attempt to gain control of a company and replace its management. However, the battles fought in the boardroom instead of on broomsticks are every bit as fierce. Last mont...
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