With stock prices plunging, many investors are mad as hell and they're not going to take it anymore.

Brad M. Barber, a professor of finance at the University of California, Davis, Graduate School of Management told (subscription required) The Wall Street Journal that hedge funds are sparring with management more because it "gives them someone else to blame for their misfortune."

Maybe that's part of it, but I don't think it's just a rationalization thing. The reality is that the vast majority of companies would likely benefit from a large activist hedge fund smacking people around and keeping things honest. Most public companies have seen their operational and stock price performance tumble over the past year but executive compensation hasn't budged. Corporate governance in America is essentially a joke and if a bear market brings about a renewed focus on managerial neglect and incompetence, that's a good thing.

It might well be that many fund managers are motivated by frustration at their declining performance and are lashing out at anyone who had anything to do with it but in many cases investors are victims of bad and self-serving management.