Billionaire investor Carl Icahn said he plans to provide “seed money” to new activist funds as he backs other vocal investors.
Activism has proven to be rewarding for longer-term investors, Icahn said today at the Active-Passive Investor Summit in New York, dismissing most criticism that the technique is only focused on short-term gains.
Activist investors tend to buy at least 5 percent of a company’s stock and flag their intention to actively engage corporate executives and directors by disclosing their holding in a 13D filing with the U.S. Securities and Exchange Commission.
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