(AP/Amanda Macias/Business Insider)
Bill Ackman and Carl Icahn
Carl Icahn and Bill Ackman might soon need some translators on staff.
Both investors are activists, who take small stakes in companies and then agitate for changes that ought to boost share prices.
It's a tremendously popular strategy, and activist funds have seen
assets under management balloon over the past five years. But that growth means the fund managers are bumping into one another as they hunt for targets.
"In the US market where activism is an accepted part of the investing ecosystem, activists are running the same screens and identifying the same targets," Chris Young, head of contested situations in the M&A group at Credit Suisse, told Business Insider.
"They are not running into one another in a coordinated wolfpack fashion, but by accident. You get that crowded environment."
One recent example is Mondelez, the maker of Oreo cookies. Ackman recently unveiled a big position in the company, joining fellow activist Nelson Peltz. Bank of New York Mellon also found itself squeezed by two activists in quick succession, with Peltz's Trian and activist fund Marcato Capital Management both agitating for change.
One solution for activists looking for a unique target: To start looking abroad for new opportunities.
"That in turn, logic would dictate, means activists are going to look outside that crowded market, and allocate dry powder to other jursidictions," Young said.
The numbers show what's already underway: In 2015 so far, activists have targeted foreign companies 31 times — up from 17 in all of 2014 and a record high, according to FactSet's Activist Insight. The number of international activist campaigns has risen every year from 2010 onwards, the data show.
(Business Insider graphics from FactSet Activist Insight)
Activist investing overseas is up over the last five years - but it took off in 2015.
That includes a number of campaigns elsewhere in the Americas, with activists targeting companies listed in places like Bermuda and Canada. But it also includes a number of European targets.
John Paulson's hedge fund has tried to elbow Dutch drugmaker Mylan into the arms of a bidder. Nelson Peltz started pushing UK-based Pentair to start buying out rivals. Jeffrey Ubben's ValueAct Capital is invested in Rolls-Royce Holding in the UK and have met with chief executive Warren East.
Dan Loeb has pursued campaigns in Japan, recently announcing a new investment in Suzuki, while Elliott Management this year fought a battle with the family dynasty behind Samsung.