Hedge fund activists rely on their ability to drive corporate decisions to unlock value in an underperforming company by altering management and strategic direction. Shareholder activists will make considerable investments in companies with the intention of impacting this “positive” change. There has been significant debate as to whether these activists are truly adding value to corporate shareholders. However, it appears that the negative connotation associated with the term “activist” is fading. Even the current chair of the Securities and Exchange Commission, Mary Jo White, noted in a conference in December 2013 that the views of shareholder activists have moved away from the negative association. In this article I will focus on activist investments made by billionaire activist Carl Icahn. Icahn has been called a “corporate raider” (particularly in the 1980s), but in recent years this nickname appears to have evolved into “activist investor.” His track record is undoubtedly mixed, however, it appears that over the past decade, his wins have outnumbered his losses (33 to 19)1 and the overall returns of his activist investments have significantly outpaced the stock markets. Shareholder activism can trace its earliest roots to the 1930s, following the stock market crash of 1929. In reaction to the crash, lawmakers passed new laws such as the Securities Act of 1933 and the Securities and Exchange Act of 1934 in an attempt to protect potential shareholders. However, the passage of these new laws could not fully address the changes desired by shareholders to incorporate America. As a result, shareholder activists attempted to influence change with c...... middle of paper... this money to reduce the number of shares outstanding in conjunction with the reduction in expected cash flows. Company management rejected Icahn's proposal, calling the deal "irresponsible" and saying it could potentially jeopardize the company's future. However, they explored relevant strategic alternatives. Kerr-McGee's board of directors agreed to sell or spin off the company's chemicals unit and also said it would sell about $2 billion in ownership. These properties represented up to 25% of Kerr‐McGee's production and 15% of the company's proven reserves at the time. Additionally, they agreed to repurchase $4 billion of common stock, representing nearly 30% of outstanding shares. The investment has returned 28% since Icahn reported his holdings within the 13D filing. Over the same period, the S&P 500 returned the 5%..