Talk of changes to the board at United Airlines and Valeant this week are just one sign of the growth of shareholder activism, which one expert believes has benefited the average investor. Hedge fund manager Jeff Gramm has penned a book on the topic, entitled Dear Chairman. ‘Even if you have a few bad interventions and a few bad activists, the fact that every board member has to know that there are shareholders looking over their shoulder, that accountability is in the system now,’ explained Gramm. ‘The threat of activism is pervasive. I think that’s a good thing for everybody.’ Gramm’s book includes letters that activist investors sent to managers at targeted companies. Gramm believes activism has exploded thanks to support from big institutional investors, who are supportive of the activist strategy.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Video
This Is One of the Oldest Streets in NYC - Can You Name It?
Time for some #StreetTrivia! Can you name this historic street in the Financial District? Watch the video and play along.
Why Investors Should Consider ESG ETFs
Looking to invest sustainably? Investors who are seeking to be more conscious about the names in their portfolios can invest in ETF's that follow the values that they believe in. Here's why investors should consider adding these ETF's to their portfolio.
Jim Cramer Explains How to Trade the Banks Post-Earnings
Most of the banks have reported earnings by now. So, what should investors do now? Jim Cramer Cramer has some advice.