Five billionaire investors have launched a new organization to advocate for activist shareholders as the practice comes under increasing scrutiny by lawmakers.

The Council for Investor Rights and Corporate Accountability, or CIRCA, is the first attempt by activist investors to convince policymakers and the public that their investment strategies help rather than hurt businesses, The Wall Street Journal reported.

CIRCA was founded by billionaire hedge fund managers Paul Singer, Carl Icahn, Barry Rosenstein, William Ackman and Daniel Loeb. All engage in investing as a way to bring about change in either corporate leadership or culture, although critics contend they are usually more concerned about maximizing short-term profits rather than ensuring the long-term health of a company.

Democratic presidential candidates Hillary Clinton and Bernie Sanders have both called for more oversight of activist shareholders. However, those same shareholders say they are providing a valuable service by being a watchdog on corporate management.

"We're telling a story about an ecosystem and how they help America and make it a competitive system," Rob Collins, a political strategist advising CIRCA, told the newspaper.

No staff announcements have been made for CIRCA. http://on.wsj.com/23YqEaD

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