The NYT reports that:
The California Public Employees’ Retirement System, the nation’s largest pension fund, will eliminate all of its hedge fund investments over the next year on concerns that investments are too complicated and expensive.
Granted, CalPERS itself engages in activism, but it's still an interesting point. As is this bit of news:
Through August, activist investors returned an average 5.9% for the year, according to HFR, compared with a 3.9% gain for hedge funds in general. Still, both trailed the S&P 500's 9.9% gain.
So you'd be better off stashing your money in an S&P 500 index that giving it to activist shareholders. Someone alert Lucian!