STORY: 2025 was something of a year for activist investors.
But what exactly are they and how do they operate?
Well, think of a shareholder that doesn't just buy stock -- but also pushes for change.
That can include demands for faster growth, or new directors.
Or even a breakup or a full sale.
:: On the Money
Data from Barclays revealed a record 255 activist investor campaigns worldwide last year - up nearly 5% from 2024.
:: How does it work?
Here's the usual play.
First, the investor talks privately with the company.
If nothing changes, they go public: proposes new directors, asks other shareholders to vote with them, and pushes for specific moves - often a sale or break-up.
This pressure can really shake up the corner office.
That Barclays data also showed a record 32 CEOs left within a year of an activist campaign in 2025.
But it's not all high stakes and high drama.
Some investors consider themselves as 'active' rather than 'activist'.
:: Toby Gibb, Head of Investments, Artemis
"What we're trying to do is invest in companies for the long term, form a partnership with management, have discussions with them and help them to improve their business. But there can be situations where we think there are improvements that can be made, so we might write letters to management outlining what we think could be improved. We might also vote against management. Ultimately we could exit our position in that company."
:: Dealmaking is back
Dealmaking played a big role for investors last year, with $5.1 trillion worth of mergers and acquisitions, the second-best year on record.
And as the market opened up, activists leaned in.
More than half of second-half campaigns pressed companies to sell last year.
Bank of America's activism defense team said activists are trying to spark more mergers and acquisitions.
And experts say improving deal conditions are creating opportunities for transactional activism into 2026.
:: Where is it happening?
The U.S. is still the hotspot.
It saw 141 campaigns in 2025, up nearly a quarter from the year before.
Japan set a record too with 56 campaigns - that was about half of all activity outside the U.S.
"The moves in areas like Japan and also Korea in terms of government reform mean those markets will continue to grow in terms of targets for activism."
Elliott Investment Management led the way.
It launched 18 campaigns with nearly $20 billion for the year deployed, and 17 board seats won.
It included two at energy giant Phillips 66.
Other targets included household names like Lululemon Athletica, Lyft, PepsiCo and Yeti.
:: What do returns look like?
Data shows that on average, activist investors returned 13.4% last year.
Let's look at one example from the past year: Kenvue, the maker of Tylenol and Band-Aid.
Activists including Toms Capital and Third Point pushed for a sale before a deal with Kimberly-Clark was announced in early November.
Kenvue's shares are up about 20% since the sale news.
A person familiar with the matter said at least one activist was ready to start a proxy fight if the sale stalled.
:: What to watch next?
Experts say expect more activism, particularly among small and mid-sized companies.
The bottom line: activist investors buy in - and push hard for changes they think will raise the share price.
Right now, the fastest route many of them see is through dealmaking.
