15 Most Feared Activist Hedge Funds

1. Elliott Management

Portfolio Value: $16.12 billion

Founded in 1977 by legendary investor Paul Singer, Elliott Investment Management is among the 15 most feared activist hedge funds. While managing two funds, Elliott Associates L.P. and Elliott International Limited, the hedge fund seeks to Influence the company’s management as part of its activist campaigns, as is the case at  Southwest Airlines Co. (NYSE:LUV).  The hedge fund is believed to have gained $5.5 billion in 2023.

The hedge fund also pushes for strategic changes, including cost cuts and selling underlying units or entire businesses to maximize shareholder value. Elliott Investment is best known for pressuring the companies’ leadership teams to make specific changes that would benefit the share price and shareholders. The hedge fund has taken activist stakes in more than 140 companies in the past three decades, including at  Southwest Airlines Co. (NYSE:LUV).

With a portfolio value of about $16.12 billion, the hedge fund primarily invests in corporate real estate and sovereign debt. Its portfolio also includes stakes in basic materials companies, technology, healthcare, consumer cyclical, and financial services.  The hedge fund has experienced only two periods of economic loss in fifty years.

Some of its latest activist campaigns are on Texas Instruments Incorporated (NASDAQ:TXN), whereby it has amassed a $2.5 billion stake and is pushing the company to improve its free cash flow by adopting a less rigid plan for capital expenditure.  It has also launched an activist campaign at Southwest Airlines Co. (NYSE:LUV) and demanded the company fire CEO Bob Jordan and Chairman Gary Kelly as the company has suffered from margin deterioration and stock drop over the past four years.

Tracking the moves made by some of the most significant activist hedge funds is one of the best ways of uncovering high-risk reward opportunities trading at discounted valuations. However, given that the artificial intelligence arms race is just starting, under-the-radar A.I. stocks are trading at highly discounted valuations with incredible promise for anyone looking to diversify their portfolio. If you are looking for an A.I. stock that is more promising than the top activist investment plays, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.