A brief history of activist investors in tech and the role they play

On Tuesday, activist investor Starboard Value revealed a large stake in the company. A hedge fund founded in 2002 by Jeffrey Smith and Mark Mitchell, Starboard has a history of effecting change at major companies, spurring the spinning off of media startup Patch from AOL in 2014).

In the past few years, activist investors have become more active in the tech sector. During the second quarter of the year, investor activists launched more campaigns in tech than in any other industry.

How many of these activists have achieved their goals? Depending on how you define success

The study looked at interventions by hedge fund activists over the course of a decade. When activist investors get involved, the stock market tends to rise around six percent. The upswings aren't a thing of the past. In the five years after activist investors show up, the stock prices of companies they target tend to hold onto their initial gains.

Carl Icahn advocated for the split-up of the business of the company. Much of the increase in the value of the stock was a result of the deal between the two companies. Icahn predicted that divvying up the company would make the individual pieces more attractive.

The past decade or so shows that not all of the time.