Hardly an exciting enterprise, consumer goods producer Hanesbrands (HBI) nevertheless became one of the most-discussed publicly traded securities, with HBI stock bouncing sharply higher during the midweek session. Unconfirmed chatter suggests that an activist investor may be targeting Hanesbrands to spark positive momentum in the business.
On paper, the idea of activist investing can be cathartic and emotionally satisfying. In some ways, it’s like being friends with the biggest, toughest streetfighter in a bar before a brawl breaks out. Just with your buddy’s menacing stare, it’s possible for an angry mob to step down and rethink its priorities. However, that’s more fiction than reality.
