In this piece, we will take a look at the 40 companies that are facing activist pressure.
The equity market has been on a roll, rallying by 10% in the first half of 2024, adding to the 24% gain registered in 2024. Amid the gains, one would be mistaken to think activist investors would go slowly, given the bumper returns on offer. That is not the case, given that activist investors are becoming more active and bold in a push to squeeze optimum value in the equity markets.
It was arguably one of the busiest years for activist investors as they launched 1,151 campaigns in 2023, up from 1,083 campaigns recorded in 2022. Since 82% of the campaigns revolved around environmental, social, and governance issues, ESG affirms a new wave of activism in the equity markets.
In addition, there was a 7% jump in new activist investor campaigns in 2023 to 252, setting a new record. Likewise, there were 77 first-time activist-initiated campaigns in 2023, up from 55 in 2022, according to data by Lazard. Some of the most targeted sectors with activist campaigns were industrials at 21%, followed by technology at 20% and healthcare at 20%. Consumer and financial sectors accounted for 11% and 8% of the activist campaigns, respectively.
Activist investors can be individuals or institutions that acquire a controlling stake in a target company. With the investment, they gain the much-needed power to push for strategic changes that can unlock hidden value in a company they believe is underperforming. A push for seats on the board is one of the strategies deployed as one way of influencing decision-making and advocating for management changes.
In aggressive cases, activist investors can push for the sale of the entire business or some part of the business to generate shareholder value. Some activist campaigns also involve pushing for restructuring, such as cutting costs to bolster margins.
A push to sell the entire business or split some units were some of the favorite actions pushed by activist investors, in 49% of the activist campaigns last year. Additionally, the activist investors pushed for a change of leadership, with some advocating for streamlining operations through cost cuts to improve margins. Activist investors pushed for management changes in 10% of the campaigns initiated last year following a 46% year-on-year increase in 2022.
Elliot Management, Starboard Value, Trian Partners, and Third Point were some of the top US activist investors at the center of most corporate wars. US activist investors accounted for 14% of the total activist campaigns last year, affirming their influence in pushing for value in various companies. Likewise, ValueAct posted a 39% gain through its campaigns as Caligan Partners rose 37% and Engaged Capital returned 29%. Pershing Square Holdings, spearheaded by activist Bill Ackman, generated a 27% gain.
Activist investors fared much better in 2023 thanks to the rising stock market that shrugged off the high interest rates that had been increased to 22-year highs of 5.25% to 5.50%. Similarly, activist hedge funds also deserve some credit for focusing on market-beating stocks that did much better amid an uncertain market environment. In the end, activist investors enjoyed one of their best years in the recent past, with an average return of 20.2% in 2023. The gains came after the strops had lost an average of 16% in 2022
Activist investors showed no signs of slowing in the first half of 2024, going by 147 new campaigns, surpassing the 2018 record of 143. In the second quarter of 2024, 86 new activist campaigns were recorded, barely a year after a strong rebound.
The heightened activist investor pressure came amid concerns that factors like high interest rates and slowing growth would hurt the company’s performance. Amid a surge in activist investor campaigns in 2024, the success rates of most of the campaigns have dropped significantly. For instance, most of the campaigns in the first half only won 74 board seats, down from 93 as of last year. It is also a concern that activists only secured 11% of their sought-after board seats compared to a 65% win ratio in 2023. The significant decline in success rates affirms that companies are becoming more effective in fending off activist pressure.
Investors are already pushing companies harder for change in 2024, concerned by the impact of soaring geopolitical instability and economic uncertainty. Creating a lower and stable interest rate environment is expected to create more opportunities for activist investors to capitalize. Given that nearly half of the campaigns in 2023 involved a merger and acquisition objective, it is expected to be the case in 2024, especially with the Federal Reserve cutting interest rates.
Reports show that there could be more than $2 trillion in capital set for acquisitions in 2024, and more activist investors are expected to demand companies review their business portfolios. Part of the proposals that activist investors are likely to push for is the divestment of some units or the sale of the entire company.
Even though activist investing is evolving significantly with a renewed focus on industrial investment plays, technology companies are expected to dominate most campaigns in 2024. Nevertheless, the broader situation, including unpredictable interest rates, political instability, and the forthcoming US presidential race, adds complexity, making it harder and longer for activist efforts to succeed.
With this context, let’s take a look at the 40 companies facing activist pressure.
Our Methodology
Activist campaigns are growing as activist investors look to unlock hidden value in stocks trading below their fair value. Upon sifting through numerous media reports and scanning the Insider Monkey hedge fund database, we came up with the 40 companies facing activist pressure. The stocks are ranked based on the number of hedge funds that own them, as of Q1 2024.
Note: The returns are calculated from the investment date to August 1, 2024.
We also mentioned the number of hedge funds that had bought these stocks during the same filing period. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
40 Companies Facing Activist Pressure
40. Engaged Capital at PRA Group, Inc. (NASDAQ:PRAA)
Stock Return: 9.44%
S&P 500 Return: 22.39%
Investment date: 13/12/2023
Number of hedge funds holding stakes: 7
PRA Group, Inc. (NASDAQ:PRAA) is a financial services company that purchases, collects, and manages a portfolio of non-performing loans worldwide. The company buys non-performing loans from banks and other financial institutions and then seeks to collect on the debt.
Late last year, activist head fund Engaged Capital built a 5% stake in PRA Group, Inc. (NASDAQ:PRAA), pushing the company to improve its operations to generate more value. The activist hedge fund wants the company to cut costs and add new experience to its senior leadership.
Engage Capital is open to nominating new directors to the board that will influence the company’s strategic direction. PRA Group, Inc. (NASDAQ:PRAA) is up by about 1.2% for the year. Insider Monkey database indicates that 7 out of 920 hedge funds held stakes in the company as of the end of the first quarter of 2024.
39. Trian Fund Management at Solventum Corporation (NASDAQ:SOLV)
Stock Return: 20.6%
S&P 500 Return: -1.2%
Investment date: 22/07/2024
Number of hedge funds holding stakes: 10
Solventum Corporation (NASDAQ:SOLV) is a healthcare information services company that develops, manufactures, and commercializes solutions that address critical and customer patient needs. It offers solutions for advanced wound care. It is one of the largest providers of sterilization devices, wound dressings, medical tapes, and other hospital consumables. Solventum Corporation (NASDAQ:SOLV) reported first-quarter net sales of $2.02 billion.
Trian Fund Management is believed to have built a position in the 3Ms healthcare spinoff. The activist investor has also contacted the board to discuss ways to unlock shareholder value by reaccelerating organic growth and restoring margins. The activist investor is also pushing for asset sales.
Solventum Corporation (NASDAQ:SOLV) has been down by about 13% in the year. As of the end of the first quarter, 10 hedge funds held stakes in the company, according to Insider Monkey.
38. Barrington Capital at TriMas Corporation (NASDAQ:TRS)
Stock Return: -7.98%
S&P 500 Return: 15.1%
Investment date: 11/12/2024
Number of hedge funds holding stakes: 16
TriMas Corporation (NASDAQ:TRS) is a consumer cyclical company that designs, develops, and sells products for consumer products, aerospace, and industrial markets. It operates through the aerospace, packaging, and specialty products segment.
Barrington Capital is pushing TriMas Corporation (NASDAQ:TRS) to concentrate on its packaging division and sell off assets not essential to its core operations as part of its activist campaign. Additionally, it wants the company to consider divesting its Arrow Engine specialty businesses while the energy sector is vital. It should also consider selling its second specialty business, Norris Cylinder.
The stock is down by about 1% for the year amid the restructuring push. 16 out of the 920 hedge funds tracked by Insider Monkey held stakes in TriMas Corporation (NASDAQ:TRS) as of the end of Q1 2024.
37. Third Point at SiriusPoint Ltd. (NYSE:SPNT)
Stock Return: 55.76%
S&P 500 Return: 32.14%
Investment date: 12/04/2023
Number of hedge funds holding stakes: 17
SiriusPoint Ltd. (NYSE:SPNT) operates as a multi-line insurance and reinsurance products and services company. It offers insurance and reinsurance services in the aviation, marine, and energy sectors. The stock rallied by more than 96% last year and is already up by 25% for the year.
The rallies have come at the back of growing talk that Dan Loeb’s activist hedge fund Third Point is contemplating taking SiriusPoint Ltd. (NYSE:SPNT) private. While the current management has taken the necessary steps to position the company for long-term success, the activist investor believes it is better suited to execute its strategy as a private company.
SiriusPoint Ltd. (NYSE:SPNT) has acknowledged interest from the third point of view to take the company private. A total of 17 out of 920 hedge funds tracked by Insider Monkey held stakes in the company as of the end of the first quarter of 2024.
36. Trian Fund Management at Rentokil Initial plc (NYSE:RTO)
Stock Return: 11.11%
S&P 500 Return: 1.34%
Investment date: 11/06/2024
Number of hedge funds holding stakes: 20
Rentokil Initial plc (NYSE:RTO) is a pest control company that offers solutions for controlling rodents flying and crawling insects. It also provides hygiene services, including provision and maintenance products. While Rentokil Initial plc (NYSE:RTO) is up by 19% for the year, Nelson Peltz’s Trian Partners has amassed significant stakes in the company and seeks to engage management on ideas and initiatives to unlock value.
It is highly expected that the activist investor will push for board seats to communicate with shareholders and push for changes directly. Rentokil Initial plc (NYSE:RTO) was the subject of increased institutional holding as 20 hedge funds accumulated positions in the stock in Q1 2024, up from 15 as of the end of 2023, according to the Insider Monkey database.
35. Politan Capital at Azenta, Inc. (NASDAQ:AZTA)
Stock Return: 22.96%
S&P 500 Return: 20.87%
Investment date: 15/08/2023
Number of hedge funds holding stakes: 21
Azenta, Inc. (NASDAQ:AZTA) is a medical instruments and supplies company that provides biological and chemical compound sample exploration and management solutions for the life sciences market. Activist investor Politan Capital has targeted the company that engages management regarding business operations, financial conditions, and strategic plans.
Given that the activist investor owns 6.87% of the company’s shares, it wields the power to push for strategic changes to unlock significant shareholder value. Amid the activist campaign, Azenta, Inc. (NASDAQ:AZTA) is up by 22.96%, while the number of hedge funds holding stakes stood at 21 as of Q1 2024, according to the Insider Monkey database.
34. Icahn Capital at JetBlue Airways Corporation (NASDAQ:JBLU)
Stock Return: -2.76%
S&P 500 Return: 12.54%
Investment date: 13/02/2024
Number of hedge funds holding stakes: 23
JetBlue Airways Corporation (NASDAQ:JBLU) is an industrial company that provides air transport services. It is the latest company to be targeted, Carl Icahn, who has built a reputation as a corporate raider and activist shareholder. After disclosing a stake of about 10% early in the year, the hedge fund manager secured two board seats at JetBlue Airways Corporation (NASDAQ:JBLU).
It still needs clarification on the strategy Icahn wants to implement at the airline or the change he is pushing to unlock value. JetBlue Airways Corporation (NASDAQ:JBLU) is already up by about 21.9%. According to the Insider Monkey database, the number of hedge funds holding stakes in the company increased to 23 in Q1 2024 from 20 as of the end of last year.
33. Barrington Capital at Hanesbrands Inc. (NYSE:HBI)
Stock Return: 18.4 9%
S&P 500 Return: 28.12%
Investment date: 15/05/2023
Number of hedge funds holding stakes: 23
Hanesbrands Inc. (NYSE:HBI) is a consumer goods company that designs, manufactures, and sells apparel. It operates through Innerwear, Activewear, and International. Barington Capital has been pursuing an activist campaign against the company, pressuring it to reduce costs, generate cash, and pick up a new CEO to steer it in a new strategic direction.
“We believe that Hanesbrands currently sits at a critical juncture and must immediately focus on cash generation and debt reduction in order to create long-term value for shareholders. We believe that management’s largely ineffective response to recent market challenges is responsible for the company’s rapidly deteriorating results. Further, Hanesbrands’ excessive debt burden appears to amplify the impact of poor operating performance on Hanesbrands Inc. (NYSE:HBI) ‘s ability to create value for shareholders,” said Barington’s CEO, James Mitarotonda.
Hanesbrands Inc. (NYSE:HBI) is up by 3.28% year to date as it tries to bounce back amid the activist campaign. 23 out of the 920 hedge funds tracked by Insider Monkey held stakes in the company as of the end of Q1 2024.
32. Politan Capital at Masimo Corporation (NASDAQ:MASI)
Stock Return: -9.34%
S&P 500 Return: 22.19%
Investment date: 16/08/2023
Number of hedge funds holding stakes: 25
California-based Masimo Corporation (NASDAQ:MASI) manufactures and markets patient monitoring technologies, automation, and connectivity solutions. The company has been embattled in a fierce battle with activist hedge fund Politan Capital that has already found its way into courts of law.
The hedge fund, which holds an 8.9% stake in Masimo Corporation (NASDAQ:MASI), is pushing for management changes and is urging shareholders to vote for its board nominees as it looks to influence its strategic direction. Masimo, on its part, has sued the hedge fund, insisting it must correct material misstatements and omissions in proxy material.
Amid the bitter standoff, Masimo Corporation (NASDAQ:MASI) has been down by 2.7% for the year. According to the Insider Monkey database, the number of hedge funds holding stakes in the company dropped to 25 in Q1 2024 from 34 as of the end of 2023.
31. Browning West at Gildan Activewear Inc. (NYSE:GIL)
Stock Return: 28.76%
S&P 500 Return: 12.64%
Investment date: 21/01/2024
Number of hedge funds holding stakes: 27
Gildan Activewear Inc. (NYSE:GIL) is a consumer cyclical company that manufactures and sells apparel products. It provides activewear products, including T-shirts, fleece tops, and sports shirts. The company has been the subject of an activist campaign spearheaded by institutional investor Browning West.
The activist institutional investor has succeeded in pushing for the resignation of the 12-person board, ending a contentious proxy battle that has also resulted in the restoration of former CEO Glenn Cham Andy. The restoration comes on the activist hedge fund insisting the previous board completely disregards sound corporate governance.
After remaining flat for the better part of 2023, Gildan Activewear Inc. (NYSE:GIL) is moving, gaining 25% in 2024 amid the ongoing activist campaign. Additionally, 27 out of 920 hedge funds tracked by Insider Monkey held stakes in the apparel manufacturing company as of Q1 2024, up from 19 as of the end of last year.
30. Jana Partners at QuidelOrtho Corporation (NASDAQ:QDEL)
Stock Return: – 1.3%
S&P 500 Return: 5.1%
Investment date: 26/05/2024
Number of hedge funds holding stakes: 28
QuidelOrtho Corporation (NASDAQ:QDEL) is a US healthcare company that offers diagnostics solutions through Labs, Transfusion Medicine, Point-of-Care, and Molecular Diagnostics business units. Activist investor Jana Partners built a new stake in QuidelOrtho Corporation (NASDAQ:QDEL) in the first quarter of 2024.
By building a position, Jana Partners is signaling its interest in the company and that it has already committed significant resources to what could become an activist campaign. The investment came on the stock shedding more than 50% in market value in 2023. QuidelOrtho Corporation (NASDAQ:QDEL) has also lost about 43% in market value, an underperformance that should prompt Jana Partners to push for strategic initiatives to reinvigorate the company’s prospects and value. As of the end of Q1 2024, 28 hedge funds held stakes in QuidelOrtho Corporation (NASDAQ:QDEL), down from 32 as of 2023.
29. Starboard Value LP at Bloomin’ Brands, Inc. (NASDAQ:BLMN)
Stock Return: – 23%
S&P 500 Return: 22.5%
Investment date: 18/08/2023
Number of hedge funds holding stakes: 29
Bloomin’ Brands, Inc. (NASDAQ:BLMN) is the proprietor and manager of casual, upscale casual and high-end dining establishments across the United States and abroad. Its collection of dining venues encompasses Outback Steakhouse, Carrabin’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar.
Activist investor Starboard Value has targeted Bloomin’ Brands, Inc. (NASDAQ:BLMN) with plans to improve operations to generate more shareholder value. The activist investor, which owns about 10% of market value, believes the company is undervalued relative to its peers due to poor execution. Bloomin’ Brands, Inc. (NASDAQ:BLMN) is down by about 25% for the year, affirming the underperformance. Insider Monkey database indicates 29 out of 920 hedge funds tracked held stakes in the company as of the end of Q1 2024.
28. Engaged Capital at Nevro Corp. (NYSE:NVRO)
Stock Return: – 59%
S&P 500 Return: 13.5%
Investment date: 12/12/2023
Number of hedge funds holding stakes: 29
Nevro Corp. (NYSE:NVRO) is a medical device company that provides products for patients suffering from chronic pain. Activist hedge fund Engaged Capital took a position in the medical devices company, calling it to focus on improving profitability and stop pursuing acquisitions.
Activist investor Engaged Capital confirmed a 3% stake in Nevro Corp. (NYSE:NVRO) in December 2023. Early this year, the company entered into a corporation agreement with the activist investor, upon which it secured a seat on the board to influence strategic direction.
Additionally, the hedge fund believes the company could be an acquisition target of a larger rival, which should provide an avenue for generating value. 29 out of 920 hedge funds tracked by Insider Monkey held stakes in Nevro Corp. (NYSE:NVRO) as of the first quarter, up from 21 as of the end of 2023.
27. Jana Partners at Rapid7, Inc. (NASDAQ:RPD)
Stock Return: – 7.8%
S&P 500 Return: – 1.3%
Investment date: 26/06/2024
Number of hedge funds holding stakes: 32
Rapid7, Inc. (NASDAQ:RPD) is a software and infrastructure solutions company that offers cybersecurity solutions for endpoint-to-cloud data collection and sharing applications. After losing more than 25% in market value, activist investor Jana Partners has been pushing Rapid7, Inc. (NASDAQ:RPD) to consider a complete sale of the business.
In addition, the activist investor is pushing the company to improve its operations and forecasting. While providing software tools and services that help businesses manage and monitor risks, Rapid7, Inc. (NASDAQ:RPD) has been forced to compete harder for its business as clients cut spending.
32 out of 920 hedge funds tracked by the Insider Monkey database owned stakes in Rapid7, Inc. (NASDAQ:RPD) as of the end of Q1 2024.
26. Jana Partners at Wolfspeed, Inc. (NYSE:WOLF)
Stock Return: – 52%
S&P 500 Return: 17%
Investment date: 11/12/2023
Number of hedge funds holding stakes: 33
Wolfspeed, Inc. (NYSE:WOLF) specializes in silicon carbide technologies within the semiconductor sector. It offers solutions aimed at enhancing energy efficiency and promoting a sustainable future. Its range of products encompasses silicon carbide materials and power components designed for various uses, including electric vehicles, rapid charging, and renewable energy and storage systems.
Activist investor Jana Partners has been pushing Wolfspeed, Inc. (NYSE:WOLF) to consider all available options to unlock value, including considering a sale of the entire business. The remarks come on the company losing more than 60% in market value in 2023. Wolfspeed, Inc. (NYSE:WOLF) also shed about 54% in market value in 2024 due to missing financial and operational efficiencies as of Q1 2024. 33 hedge funds out of 920 tracked by Insider Monkey held stakes in the company.
25. Elliot Management at Southwest Airlines Co. (NYSE:LUV)
Stock Return: -3.7%
S&P 500 Return: -0.7%
Investment date: 09/06/2024
Number of hedge funds holding stakes: 33
Southwest Airlines Co. (NYSE:LUV) is one of the largest companies in the world, providing scheduled air transportation services across the globe. The company has been under pressure recently, with its stock plunging amid deteriorating profit margins in the last four years.
Elliott Investment Management has since accumulated significant stakes and is pushing for strategic changes to reinvigorate growth. The activist investor is going for the ousting of current CEO Bob Jordan and Chairman Gary Kelly. The hedge fund is also calling for a business review.
Southwest Airlines Co. (NYSE:LUV) has implemented measures to protect its interests. The airline implemented a strategy known as a poison pill, which would go into effect if any shareholder gained a stake exceeding 12.5%, thereby restricting Elliott’s capacity to gain further influence.
According to the Insider Monkey Database, the stock is down by 7.14% for the year, with the number of hedge funds holding stakes in Southwest Airlines Co. (NYSE:LUV) increasing to 33 from 27 as of the end of 2023.
24. Starboard Value at Algonquin Power & Utilities Corp. (NYSE:AQN)
Stock Return: -25.89%
S&P 500 Return: 36.21%
Investment date: 29/06/2023
Number of hedge funds holding stakes: 33
Algonquin Power & Utilities Corp. (NYSE:AQN) is a clean energy and utility firm that offers solutions and services for energy and water across North America and around the globe. The regulated services division delivers services subject to rate regulation for water, electricity, and gas utilities. The renewable energy division produces and markets power from its collection of renewable energy facilities.
Activist investor Starboard, which owns a 9% stake in Algonquin Power & Utilities Corp. (NYSE:AQN), has been pushing for strategic changes to unlock additional value. The hedge fund has already secured three seats on the board. The hedge fund has also succeeded in pushing for the transition of the CEO and a strategic review of the renewable energy unit.
Algonquin Power & Utilities Corp. (NYSE:AQN) is down by about 3.25% year to date. On the other hand, hedge funds holding stakes in the company out of the 920 tracked by Insider Monkey increased to 33 in Q1 2024 from 29 in Q4 2023.
23. Engaged Capital at V.F. Corporation (NYSE:VFC)
Stock Return: 20.6%
S&P 500 Return: -5.8%
Investment date: 17/10/2023
Number of hedge funds holding stakes: 33
V.F. Corporation (NYSE:VFC) is a conglomerate of consumer footwear and clothing brands. It designs, manufactures, and sells branded lifestyle clothing, shoes, and accessories. Activist hedge fund Engaged Capital has been pushing for board representation in the owner of North Face, vans, and Timberland brands.
The hedge fund is pushing for board representation to influence its strategic direction, which involves cutting costs and exploring strategic alternatives such as selling non-core brands or the entire business.
V.F. Corporation (NYSE:VFC) has been down by 9.78% in the year to date. As of the end of the first quarter, 33 out of 920 hedge funds tracked by Insider Monkey held stakes in the company, up from 30 as of 2023.
22. Engaged Capital at Shake Shack Inc. (NYSE:SHAK)
Stock Return: 2.78%
S&P 500 Return: 30.44%
Investment date: 14/05/2023
Number of hedge funds holding stakes: 34
Shake Shack Inc. (NYSE:SHAK) is the proprietor, manager, and permit holder for Shake Shack eateries, which serve hamburgers, chicken, hot dogs, crinkle-cut fries, milkshakes, frozen custard, alcoholic beverages, and other items.
Activist hedge fund Engaged Capital amassed a 6.6% stake in the high-end Burger King and soon started pushing for three board seats. The hedge fund believes that Shake Shack Inc. (NYSE:SHAK) should get rid of its staggered board, having also reiterated that it needs to double its profitability. Amid the activist campaign, the stock is up by about 19.12% yearly.
As of the end of the first quarter, 34 hedge funds tracked by Insider Monkey held stakes in Shake Shack Inc. (NYSE:SHAK), up from 28 as of 2023.
21. Barrington Capital at Mattel Inc (NASDAQ:MAT)
Stock Return: 25.59%
S&P 500 Return: 5.39%
Investment date: 10/11/2023
Number of hedge funds holding stakes: 35
Mattel Inc (NASDAQ:MAT) is an entertainment company that designs and sells toys and consumer products. It offers dolls and accessories as well as books and gaming items. While the stock is up by about 2.7% in 2024, it’s been under immense pressure, a move that has prompted activist investor Barington Capital into action.
The activist hedge fund believes it is high time the toy company considered selling its America Girl and Fisher-Price brands, citing underperformance in the units. The hedge fund also thinks Mattel Inc (NASDAQ:MAT) should pause its continued push for mergers and acquisitions and consider a $2 billion share repurchase operation to return value to shareholders.
As of the end of Q1, 2024, 35 out of 920 hedge funds tracked by Insider Monkey held stakes in Mattel Inc (NASDAQ:MAT).
20. Elliot Management at Suncor Energy Inc. (NYSE:SU)
Stock Return: -9.76%
S&P 500 Return: 30.54%
Investment date: 28/04/2022
Number of hedge funds holding stakes: 35
Suncor Energy Inc. (NYSE:SU) is an integrated energy company that explores and produces oil and gas on the East Coast of Canada. Elliott Management has been pursuing an activist campaign in the company, and its efforts are slowly bearing fruit.
The activist investor succeeded in pushing for management changes, which resulted in appointing former Exxon Mobil executive Rich Kruger as CEO last year. Likewise, Suncor Energy Inc. (NYSE:SU) is already up by 21% for the year, having announced plans to ramp up share buybacks. It has bolstered its spending on share repurchases to 75% of free funds flow.
As of Q1 2024, 35 out of 920 tracked by the Insider Monkey database held stakes in Suncor Energy Inc. (NYSE:SU).
19. Elliot Management at Etsy, Inc. (NASDAQ:ETSY)
Stock Return: – 20%
S&P 500 Return: 7.3%
Investment date: 03/02/2024
Number of hedge funds holding stakes: 35
Etsy, Inc. (NASDAQ:ETSY) is an internet retail giant that operates online marketplaces that connect buyers and sellers. Activist investor Elliott Management has built a 13% stake in the company and, in the process, handed a seat on the board to influence the company’s strategic direction.
With a seat on the board, the activist hedge fund can push for strategic changes to unlock value that is not limited to selling some units or the entire business.
Etsy, Inc. (NASDAQ:ETSY) is down by 17.34% for the year. On the other hand, 35 out of 920 hedge funds tracked by Insider Monkey held stakes in the company as of the end of Q1 2024.
18. Elliot Management at Phillips 66 (NYSE:PSX)
Stock Return: 19.39%
S&P 500 Return: 17.86%
Investment date: 29/011/2023
Number of hedge funds holding stakes: 35
Phillips 66 (NYSE:PSX) is an energy manufacturing and logistics company transporting crude oil and feedstocks. It also produces and markets various chemicals, including ethylene and benzene.
After disclosing a $1 billion stake in Phillips 66 (NYSE:PSX) last year, Elliott Management pushed for board seats as it sought to push for strategic changes focusing on improving the oil refining business.
The activist investor has succeeded in pushing for the appointment of directors with refining experience to drive growth while also pushing for cost cuts. Since the firm invested in the company, Phillips 66 (NYSE:PSX) has climbed by over 25%. Likewise, it is up by 9% for the year. As of the end of Q1 2024, a total of 35 hedge funds tracked by the Insider Monkey database held stakes in the company, up from 29 as of 2023.
17. Jana Partners at Frontier Communications Parent, Inc. (NASDAQ:FYBR)
Stock Return: 64.78%
S&P 500 Return: 26.45%
Investment date: 17/10/2023
Number of hedge funds holding stakes: 35
Jana Partners, a hedge fund dedicated to activism in investments, is calling on Frontier Communications Parent, Inc. (NASDAQ:FYBR) to commence a comprehensive evaluation of the business that might involve selling the telecommunications firm, claiming that its stock performance will remain poor without intervention. The fiber broadband company offers communication and technology services across the US.
Since the activist investor made the remarks late last year, the stock has gained 16% in 2024 as it continues to bounce back after years of underperformance. 35 out of 920 hedge funds tracked by Insider Monkey held stakes in Frontier Communications Parent, Inc. (NASDAQ:FYBR) as of the end of Q1 2024.
16. Third Point at Advance Auto Parts Inc (NYSE:AAP)
Stock Return: -12.69%
S&P 500 Return: 8.39%
Investment date: 12/04/2023
Number of hedge funds holding stakes: 39
Raleigh, North Carolina-based Advance Auto Parts Inc (NYSE:AAP) is a consumer cyclical company that offers automotive replacement parts, accessories, batteries, and maintenance items. After dropping by 57% in 2023, the stock is subject to heightened activist pressure from Third Point and Saddle Point Management.
The activist pressure has already resulted in the company appointing three new board members with experience in automotive supply chain and merchandising. Advance Auto Parts Inc (NYSE:AAP) is also under pressure to sell Worldpay, a wholesale distributor of original equipment it bought in 2014. The activist pressure is slowly bearing fruit as the stock is up by 2.2% for the year.
As of the end of the first quarter of 2024, 39 hedge funds out of 920 tracked by the Insider Monkey database held stakes in Advance Auto Parts Inc (NYSE:AAP).
15. Bluebell Capital Partners at the BP p.l.c. (NYSE:BP)
Stock Return: 1.47%
S&P 500 Return: 7.89%
Investment date: 30/01/2024
Number of hedge funds holding stakes: 40
BP p.l.c. (NYSE:BP) is an energy company that provides carbon products and services while operating through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. Activist hedge fund Blue Capital has been waging an activist campaign against BP p.l.c. (NYSE:BP)’ s plan to focus on clean energy at the expense of its core business.
The hedge fund has attacked the company’s involvement in its solar projects in the UK. The activist investor has consistently voiced disapproval of BP’s approach to shifting to renewable energy, claiming that it conflicts with the best interests of its investors and the broader community by abandoning fossil fuels at an accelerated pace.
BP p.l.c. (NYSE:BP) is down by about 1.7% for the year. According to the Insider Monkey database, the number of hedge funds owning stakes in the company remained flat in Q1 2024 at 40.
14. Barrington Capital at Paramount Global (NASDAQ:PARA)
Stock Return: – 38.9%
S&P 500 Return: 29%
Investment date: 26/04/2023
Number of hedge funds holding stakes: 42
Paramount Global (NASDAQ:PARA) is a communication services company that operates as a media streaming and entertainment company. Activist hedge fund Barington Capital has joined other investors in pushing for the company to block its potential sale to Skydance Media.
The hedge fund is pushing for Paramount Global (NASDAQ:PARA) to look for other potential bidders that would unlock more value. Barrington wants the company to consider an approach from Apollo Global Management, which is willing to acquire it for $26 billion, including debt. The acquisition push comes when the stock is down by about 21%. According to the Insider Monkey database, 42 hedge funds held stakes in the company as of the end of Q1 2024.
13. Elliot Management at Crown Castle Inc. (NYSE:CCI)
Stock Return: 25.76%
S&P 500 Return: 28.17%
Investment date: 27/10/2023
Number of hedge funds holding stakes: 43
Crown Castle Inc. (NYSE:CCI) is a real estate company that manages and leases over 40,000 cell towers and approximately 90,000 route miles of fiber supporting small cells and fiber solutions across every primary U.S. market. Activist investor Elliott Management has targeted Crown Castle Inc. (NYSE:CCI), which has been pushing for the ouster of executives and board members over underperformance in recent years.
The activist hedge fund with a $2 billion stake also wants Crown Castle Inc. (NYSE:CCI) to review its fiber strategy and consider a potential business sale. The stock rallied late last year after the hedge fund started exerting pressure. However, it is down by 4.3% for the year. Additionally, according to the Insider Monkey database, the number of hedge funds holding stakes in Crown Castle Inc. (NYSE:CCI) dropped to 43 from 45 as of the end of 2023.
12. Starboard Value LP at the Alight, Inc. (NYSE:ALIT)
Stock Return: -17.6%
S&P 500 Return: 6.1%
Investment date: 21/02/2024
Number of hedge funds holding stakes: 44
Alight, Inc. (NYSE:ALIT) offers global, cloud-based, comprehensive digital solutions for human resources and business needs. Within the employer solutions division, it provides services like employee wellness, combined benefits management, assistance with healthcare, and additional services. The professional services division delivers advisory services, including cloud advisory services for setting up and enhancing cloud platforms.
After building a 7.8% stake in the benefits service provider early in the year, Starboard Value nominated four people to Alight, Inc. (NYSE:ALIT) ‘s board of directors. With influence on the board, the activist hedge fund has what it takes to influence the company’s strategic direction to unlock value.
Alight, Inc. (NYSE:ALIT) is down by about 9.4% year to date. According to the Insider Monkey database, the number of hedge funds owning stakes increased to 44 in Q1 2024 from 39 in Q4 2023.
11. Sachem Head Capital at Twilio Inc. (NYSE:TWLO)
Stock Return: 3.6%
S&P 500 Return: -8.1%
Investment date: 01/04/2024
Number of hedge funds holding stakes: 45
Twilio Inc. (NYSE:TWLO) is a software and communications company that offers a cloud communication platform that allows developers to build, scale, and handle customer engagements. The cloud communications company has been part of an activist campaign spearheaded by Sachem Head Capital.
The activist investor has succeeded in pushing for seats on the board. Nevertheless, Twilio Inc. (NYSE:TWLO) is also facing activist pressure from Legion Partners and Anson funds, all of which are going for strategic alternatives, including divesting the data and applications business. The push comes on the underperforming stock, as it has been down by about 17% in the year.
Insider Monkey database indicates 45 hedge funds held stakes in Twilio Inc. (NYSE:TWLO) as of the end of Q1 2024.
10. Bluebell Capital Partners at BlackRock, Inc. (NYSE:BLK)
Stock Return: 19.76%
S&P 500 Return: 34.86%
Investment date: 06/12/2022
Number of hedge funds holding stakes: 45
BlackRock, Inc. (NYSE:BLK) is an investment management firm providing investing services to institutional intermediaries and individual investors. The firm manages separate client-focused equity, fixed income, and balanced portfolios.
Bluebell Capital partners have been waging an activist campaign against the company, pushing for an overhaul of the board and calling for an independent chair to increase oversight. The activist investor has also taken issue with BlackRock, Inc. (NYSE:BLK) ‘s contradictory and inconsistent approaches towards ESG investing. The stock is up by 9.5% for the year.
A total of 45 hedge funds out of 920 tracked by Insider Monkey held stakes in BlackRock, Inc. (NYSE:BLK) as of the end of the first quarter.
9. Elliott Management at Match Group, Inc. (NASDAQ:MTCH)
Stock Return: -2.89%
S&P 500 Return: 16.78%
Investment date: 08/01/2024
Number of hedge funds holding stakes: 45
Match Group, Inc. (NASDAQ:MTCH) is a social networking company that provides dating products, including Tinder and Match. Elliott Management has taken a $1 billion stake in the company as it looks to turn around its fortunes that have dwindled significantly. At the height of the pandemic, Match Group, Inc. (NASDAQ:MTCH) was hit with its market cap rising to $45 billion, which has since dropped to about $10 billion.
Having been pushing for management changes, the activist investor has already secured two board seats and is believed to be eyeing strategic initiatives to unlock value. As the hedge fund continues pushing for management changes, Match Group, Inc. (NASDAQ:MTCH) is already up by 5.55% for the year. According to the Insider Monkey database, the number of hedge funds holding stakes in the company dropped to 45 in Q1 2024 from 47 in Q4 2023.
8. Icahn Enterprises campaign at Illumina, Inc. (NASDAQ:ILMN)
Stock Return: -36.8%
S&P 500 Return: 29.2%
Investment date: 18/04/2023
Number of hedge funds holding stakes: 48
Illumina, Inc. (NASDAQ:ILMN) is a diagnostics and research company that offers sequencing and array-based solutions for genetic and genomic analysis. The company has been the target of billionaire investor Carl Icahn, who insists it is time to oust its board to reinvigorate growth metrics.
The billionaire investor has been critical of the company’s $7 billion acquisition of Gr, making it the center of a proxy fight. Nevertheless, Illumina, Inc. (NASDAQ:ILMN) has budgeted under pressure and agreed to sell the unit. Icahn has cheered the plan to divest the unit but insists the job at the company still needs to be done.
Illumina, Inc. (NASDAQ:ILMN) is down by 8.3% for the year. 48 out of 920 hedge funds tracked by Insider Monkey held stakes in the company, down from 58 as of the end of last year.
7. Starboard Value at GoDaddy Inc. (NYSE:GDDY)
Stock Return: 88.76%
S&P 500 Return: 38.14%
Investment date: 27/12/2021
Number of hedge funds holding stakes: 48
GoDaddy Inc. (NYSE:GDDY) designs and develops cloud-based products, including websites. It also offers connected commerce comprising Smart Terminal, a dual-screen all-in-one Point-of-Sale system that allows customers to manage in-store inventory.
Activist hedge fund Starboard Value is pushing GoDaddy Inc. (NYSE:GDDY) ‘s management to persist in its progress by establishing clear and achievable growth objectives and offering investors additional insights into the strategies for enhancing profit margins. The hedge fund, which owns a 6% stake, has advocated for GoDaddy Inc. (NYSE:GDDY) to increase its free cash flow and improve its profit margins.
Starboard believes the company should aim at 40% growth and profitability for 2025. The stock is already up by about 40% for the year. The number of hedge funds holding stakes in GoDaddy Inc. (NYSE:GDDY) increased to 48 in Q1 2024 from 42 in Q4 2023, according to Insider Monkey.
6. Elliot Management at Texas Instruments Incorporated (NASDAQ:TXN)
Stock Return: -3.89%
S&P 500 Return: 4.54%
Investment date: 28/05/2024
Number of hedge funds holding stakes: 49
Activist investor Elliott Investment Management revealed its investment of $2.5 billion in Texas Instruments Incorporated (NASDAQ:TXN) and urged the company to enhance its cash flow as part of its activist campaign in the semiconductor giant.
In a letter to the Texas Instruments Incorporated (NASDAQ:TXN) board, Elliott suggested implementing a “flexible capacity management approach.” Elliott said this strategy could enable Texas Instruments to reach a free cash flow of $9 per share by 2026.
The activist campaign is bearing fruit, as Texas Instruments Incorporated (NASDAQ:TXN) is already up by 20.13% for the year. On the other hand, 49 hedge funds out of 920 tracked by Insider Monkey held stakes in the company as of the end of Q1. 2024.
5. Starboard Value LP at Autodesk, Inc. (NASDAQ:ADSK)
Stock Return: 13.69%
S&P 500 Return: 1.78%
Investment date: 16/06/2024
Number of hedge funds holding stakes: 52
Autodesk, Inc. (NASDAQ:ADSK) is a software application company that offers 3D design, engineering, and entertainment technology solutions. The company is the subject of an activist campaign spearheaded by Starboard Value, demanding it explain what was behind an internal financial probe that sparked a federal investigation.
Having bought stakes worth $500 million in Autodesk, Inc. (NASDAQ:ADSK), the hedge fund is pushing for changes at the design software maker that should lead to a margin for improvement. Part of the changes includes the reconstruction of the board. The activist campaign comes when Autodesk, Inc. (NASDAQ:ADSK) is already up by about 7% for the year. According to Insider Monkey the hedge fund that owns stakes in the company increased to 52 in Q1 2024.
4. Ancora Advisors at Norfolk Southern Corporation (NYSE:NSC)
Stock Return: 2.59%
S&P 500 Return: 12.78%
Investment date: 31/01/2024
Number of hedge funds holding stakes: 54
Norfolk Southern Corporation (NYSE:NSC) and its affiliated companies are involved in the movement of raw materials, partially processed items, and finished products via rail across the United States. The firm moves agriculture, forestry, and consumer goods products.
Norfolk Southern Corporation (NYSE:NSC) has been the subject of an activist campaign propagated by Ancora Holdings after years of underperformance and declining profits. The activist hedge fund has already secured three seats on the board to push for strategic initiatives. The hedge fund has been pushing for the resignation of the current CEO and an overhaul of the management teams. It is also making Norfolk Southern Corporation (NYSE:NSC) resort to a standard precision scheduled railroading designed to reduce the number of workers, locomotives, and railroads it needs as part of a new cost structure.
The hedge fund’s efforts are already bearing fruits, as Norfolk Southern Corporation (NYSE:NSC) is up by about 6% for the year. According to the Insider Monkey database, 54 hedge funds held stakes in the company as of the end of Q1 2024, up from 50 as of the end of Q4 2023.
3. Icahn Enterprises at Caesars Entertainment, Inc. (NASDAQ:CZR)
Stock Return: 2.39%
S&P 500 Return: 1.15%
Investment date: 03/06/2024
Number of hedge funds holding stakes: 57
Activist investor Carl Icahn has amassed a significant hotel and casino operator position at Caesars Entertainment, Inc. (NASDAQ:CZR) through investment firm Icahn Enterprise. In 2020, the company joined forces with Eldorado and has since been working on reorganizing its finances and focusing on enhancing its financial position. To achieve this, it has sold off numerous assets and shut down several properties. Caesars Entertainment, Inc. (NASDAQ:CZR) has been careful about how it uses its funds and has been exploring new opportunities that are likely to be profitable and beneficial.
The impact of Icahn’s strategies to enhance value at Caesars Entertainment, Inc. (NASDAQ:CZR) is still uncertain. The hotel and casino company has faced significant challenges, declining its stock by 17% year-to-date.
The number of hedge funds tracked by Insider Monkey holding stakes in Caesars Entertainment, Inc. (NASDAQ:CZR) dropped to 57 in Q1 2024 from 65 as of Q4 2023.
2. Elliott Management at Starbucks Corporation (NASDAQ:SBUX)
Stock Return: 1.3%
S&P 500 Return: -1.4%
Investment date: 19/07/2024
Number of hedge funds holding stakes: 69
Elliott Management, a hedge fund known for its activist investing strategies, has invested substantially in the giant coffee chain. This move has led to the firm advocating for major strategic shifts as part of its activist campaign, with Starbucks Corporation (NASDAQ:SBUX) underperforming in recent years.
Faced with disappointing performance, Starbucks Corporation (NASDAQ:SBUX) has had to revise its expectations for the year twice, indicating that turning things around could be challenging. The company reported its first same-store sales decline in nearly three years, which could be going better with the activist investor.
The stock has been down by 17.20% year to date, underperforming the overall market. A total of 69 hedge funds tracked by the Insider Monkey database held stakes in Starbucks Corporation (NASDAQ:SBUX) in Q1 2024, up from 59 as of Q4 2023.
1. ValueAct Capital at Salesforce Inc (NYSE:CRM)
Stock Return: 40.94%
S&P 500 Return: 94.4%
Investment date: 31/12/2022
Number of hedge funds holding stakes: 154
Salesforce Inc (NYSE:CRM) is a technology company that provides customer relation management technology for connecting companies and customers. The company has been the subject of intense activist campaigns over the past year as investors remained disgruntled with CEO Benioff’s high acquisition habit and underperforming stock.
ValueAct Capital is one of the hedge funds that have been putting pressure on the board to the extent of securing a seat. The activist investor has overseen the deep layoff and dissolution of the board-level M&A committee. Salesforce Inc (NYSE:CRM) is up by about 1% for the year. As of Q1 2024, 154 hedge funds tracked by Insider Monkey held stakes in the company, up from 131 as of the end of 2023.
Tracking the moves that activist investors make in the market is one of the best ways of uncovering high-risk, high-reward opportunities trading at discounted valuations. However, given that the artificial intelligence arms race is just but starting under-the-radar AI stocks that are trading at highly discounted valuations hold greater promise for anyone looking for superior returns. If you are looking for an AI stock that is more promising than NVDA and that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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