This Investor Thinks Western Digital Can Nearly Double if It Does This 1 Thing

In difficult markets, investors may want to look at idiosyncratic situations. After all, Warren Buffett is doing just that, playing merger arbitrage with Activision Blizzard, betting its merger goes through later this year.

Another type of idiosyncratic situation is activist investing. That happens when a large investor takes a big stake in an underperforming company, and then advocates for specific changes to unlock value.

Last week, activist hedge fund Elliott Management revealed it had invested $1 billion in storage maker Western Digital (NASDAQ: WDC), and then disclosed its letter to management, which proposes the company split its business in two.

Source Fool.com