Investment firm Zilla Capital plans to launch an EGP 2 bn activist equity investment fund during the fourth quarter of this year, executive chairman and founding partner Wael Ziada told Al Mal on Thursday.

SOUND SMART– What’s an activist investor? Activist investors typically purchase minority stakes in public companies and attempt to change the way they’re run, usually to maximize shareholder value. A recent example of this is Disney, which is facing pressure to restructure its board and spin off assets by hedge fund Third Point, which recently acquired a stake in the company.

What we know so far: The Zilla Activism Fund will purchase stakes of between 10% and 33% in six EGX-listed companies. Zilla is still deciding which sectors to invest in and plans to submit the relevant documents to the Financial Regulatory Authority for approval after the summer.

Zilla is buying the dip: The current market slowdown makes this a good time to scoop up shares at good prices, Ziada said. The EGX has staged a rally in recent weeks that pulled it out of a bear market for the first time since mid-June, but remains down some 16.3% on its recent peak in early January.