Activist Investing Reimagined (Startup Idea)

I was thinking about this the other day and was wondering if anyone could give me some input on why this idea is not feasible:

The idea is that a firm would create an investment trust that would take massive amounts of deposits from various Hedge Fund Activist Investors. Every investor holds a similar amount of money in the fund so you as a hedge fund manager can request the investment trust to buy shares in a specific stock.

Given that you are funneling the investments through this vehicle the fund will be the one disclosing its position (>5% of shares) under the fund name. You would not be able to trace the investment back to the fund manager initially because the trouble activist investors face is backlash and retaliation from employers (CSuite) of the target company.

Thoughts?

Comments (4)

  • Intern in PE - Growth
1mo 

Sounds like Tulip shares, is the idea to use shareholder power to make changes in these companies?

  • 1
1mo 
42-, what's your opinion? Comment below:

Good question - Tulip share takes more of a community shareholder activist approach. My idea was more closely linked to the idea of getting funding from existing Hedge Funds that want to take on a majority stake in a target company without blowing the whistle too early that they're the one's that are coming for the company. Does that make sense?

1mo 
42-, what's your opinion? Comment below:

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