What it is:
A hands-on investor has a substantial interest in a company and chooses to take an active role in its management. It is the opposite of a hands-off investor.
How it works (Example):
A hands-on investor could be a large-scale stockholder who also actively participates in how a company is managed. For example, a hands-on investor is delegated responsibility as part of a company's managing directorship. A hands-on investor should not be confused with a hands-off investor, which is an investor with a similar stake who chooses not to take a proactive management role.
Why it Matters:
Major investors are more commonly hands-on than hands-off, having a deep interest in the success of the company as well as disproportionate authority in the decision-making process.