Activist to public pensions: Thank you!

Greg Taxin
Jeff Chiu | AP

The surging power of activist investors is bolstered by a growing ally: public pensions and other big institutions.

"Activists have become more effective because they can draw upon institutional investor support and can help companies drive their stock prices closer to intrinsic value," said Greg Taxin, managing member of activist investor Luma Asset Management. "It's a great thing for investors, for pensioners, for retirees and the capital markets generally."

Taxin, the recently departed president of hedge fund firm Clinton Group, made the comments this week during a panel discussion on activist investing hosted by the Harvard Business School Club of New York and moderated by Yale School of Management's Jeff Sonnenfeld.