By Marc LichtenfeldEvery year, a tiny group of investors quietly outperform the stock market by more than 20 percentage points. They're tough, direct, no-nonsense guys -- and are arguably the best people to have fighting for everyday investors like you and me. They're called activist investors. So who are these guys? What do they do? And more importantly, what can they do for you? "Activists" by Name ... And by Nature An activist investor is someone who owns a stake of 5% or more in a certain company and wants to make changes. They're required to file a 13D document with the SEC, outlining the demands they're making from management. Those demands often include...
- The sale of the company or certain assets.
- Instituting a share buyback or special dividend.
- Firing the CEO or replacing members on the board of directors.
- Reining in executive compensation.