Shareholder Activism Rising, Study Finds

New research from FactSet Shark Watch, a Norwalk, Conn.-based firm that tracks shareholder activism, shows that 501 new activist campaigns were launched in 2007, a 16.8 percent jump from 429 crusades the year before.

In 2007, activist investors, mostly hedge funds, increasingly pushed for changes aimed they say at maximizing shareholder value. For Corporate America, the takeaway is that an increasing number of shareholders are joining their ranks.

According to FactSet SharkWatch, 501 activist and other campaigns for corporate control were announced during the year, up from 429 campaigns in 2006. In 2007, 138 institutional investors and other shareholder groups (excluding individuals) announced their first ever activist-related campaign in 2007.

Hedge funds have become more willing to publicly agitate for changes. In 2007, hedge funds participated in 54 percent of all campaigns announced, up from 48 percent in 2006. The percentage of activist-related campaigns waged by members of the SharkWatch50 remained steady, with 35 percent of all campaigns announced in 2007 and 2006 having at least one SharkWatch50 member in the activist group.

The SharkWatch50 is a compilation of 50 significant activist investors. Inclusion in the SharkWatch50 is based upon a number of factors, including the number of publicly disclosed activist campaigns waged and the ability to affect change at targeted companies.