Activist Investor Heavyweights Form New Lobbying Arm

“A group of hedge funds have formed a new lobbying arm to promote the benefits of shareholder activism across the U.S. economy,” confirms CNBC News “as U.S. politicians turn up the heat on activist investors.” Dubbed the Council for Investor Rights and Corporate Accountability (CIRCA), its goal is to promote shareholder activists’ positive impact on corporate governance and business policies at publicly traded companies. This Washington, D.C.-based trade association is backed by a consortium of big names, which reportedly include Carl Icahn, William Ackman of Pershing Square, and Third Point’s Daniel Loeb. Activist investors purchase minority ownership interests in what they perceive as under-valued and poorly managed companies. They then push for overhauls in everything from corporate strategy to board composition — sometimes under the threat of a proxy fight.