Sony Corporation (ADR) (SNE), PepsiCo, Inc. (PEP), Microsoft Corporation (MSFT): Three Activist Investor Stocks to Watch

ValueAct and Microsoft Corporation (NASDAQ:MSFT)

Back in April, ValueAct revealed that it had bought up nearly $2 billion of Microsoft stock. The firm argued that despite Microsoft’s perceived failures in the PC space, the company was poised to become the largest cloud computing company in the world in just three to five years.

ValueAct has not (yet) publicly pushed for Microsoft Corporation (NASDAQ:MSFT) to change course. But Reuters reported that the fund is in talks with the Windows-maker for a board seat. Although ValueAct owns less than 1% of the company, it is said to be receiving the backing of some large institutional shareholders.

If ValueAct is able to exert any control over Microsoft Corporation (NASDAQ:MSFT), it will likely pressure the company to shift its focus to the cloud. That might be for the best, but could conflict with CEO Steve Ballmer’s recent aim to transform Microsoft Corporation (NASDAQ:MSFT) into a “devices and services” company.

Investing in activist stocks

As I’ve written previously, studies show that activist investors tend to benefit firms over time. That doesn’t mean that investing in an activist-targeted company will produce a guaranteed winner, but outside shareholders can definitely benefit.

Sony Corporation (ADR) (NYSE:SNE), PepsiCo, Inc. (NYSE:PEP), and Microsoft Corporation (NASDAQ:MSFT) are all stocks that should be watched from an activist standpoint. Along with earnings reports and ratings changes, interested investors should keep an eye on the activities of the funds involved.

The article 3 Activist Investor Stocks to Watch originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends PepsiCo. The Motley Fool owns shares of Microsoft and PepsiCo. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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