Since most hedge funds get paid based on their returns for the year, managers who want to get the most out of a stock investment often turn to shareholder activism as a way to increase shareholder value and ultimately boost their returns.

Here at we track all of the Latest Activist Situations recorded by 13D Tracker for those interested in possibly piggybacking these activist funds.

One of the stocks to watch is Vaalco Energy ( EGY - Get Report). New York-based hedge fund Nanes Delorme Partners last month told the board of directors that the company was undervalued and should evaluate strategic alternatives, including putting itself up for sale.

Houston-based Vaalco Energy is an independent energy company with a lot of its assets based in the high-margin area of West Africa. The company also has a 10% buyback in place. Nanes Delome is the largest shareholder in Vaalco and said that the company could fetch a minimum of $7.12 per share.

Another stock to watch is Jackson Hewitt Tax Service Here, well-known activist hedge fund Shamrock Value Fund is looking to shake things up a bit.

Shamrock, which owns 10.15% of the income tax service company, last week asked to remove a shareholder-rights plan, which it suggests will improve the board's accountability and create greater value for shareholders.

Shares of Jackson Hewitt are down more than 50% year to date amidst the current credit-crunch.

At Silicon Storage ( SSTI - Get Report), Riley Investment Management, a small-cap only hedge fund looking for change, has nominated four members to the board. Riley says its nominees would take "an active role" in turning around the company.

Shares of Silicon Storage are down about 35% over the past year.

For more activist ideas, including Bear Stearns and MDS , check out the Latest Activist Situations, a portfolio we update daily with significant shareholder activist moves.

You can also check out the latest activist filings from Barron's, a list we update each Saturday.

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