With shares of Starbucks, Campbell Soup and PPG Industries now the targets of high-profile activist investors — and the rest of the market in a tailspin — CNBC's Jim Cramer wanted to make sure investors weren't getting ahead of themselves.
On Tuesday, hedge fund Pershing Square, run by Bill Ackman, announced a $900 million stake in the stock of Starbucks; Nelson Peltz's Trian Partners disclosed a $690 million stake in shares of PPG; and Daniel Loeb's Third Point raised its existing stake in Campbell Soup's stock.
"You may be tempted to circle the wagons around companies that are being bolstered by activist investors," Cramer said. "After all, if very smart, very rich money managers believe in a stock, you probably think, why shouldn't you?"
But it's never quite that simple, and investors looking to buy one of the three may be left disappointed, the "Mad Money" host said.
"Piggybacking on these activists is a mistake unless you really believe in the fundamentals of the company," he said. "Hedge fund managers don't work for you and they have no obligation to tell you when they change their minds."