ValueAct Capital

Last updated
ValueAct Capital
Company typePrivately owned
IndustryInvestment company
Founded San Francisco, California, United States (2000 (2000))
Founder Jeffrey Ubben
Headquarters
Key people
AUM US$9.269 billion (2019) [1]
Subsidiaries Value Act Capital LLC, ValueAct Capital Master Fund LP, ValueActCapital Partners LP
Website ValueAct.com

ValueAct Capital is a San Francisco-based investment company with a portfolio value calculated at about $9.269 billion on behalf of several institutional and individual investors. [2] The company is a privately owned hedge fund that invests in the public equity markets.

Contents

Background

ValueAct Capital was initially formed in June 2000 to manage the capital of its founders, along with the capital of a limited number of outside investors. The firm was led by Jeff Ubben from its founding until 2020 when Mason Morfit became CEO. [3] In 2024, Rob Hale was elevated to the role of Co-CEO alongside Morfit. [4]

Investor actions

ValueAct Capital is a very active investor that identifies companies that appear to be out of favor or may be undergoing a significant transition. ValueAct makes a significant investment into the company and then works with the company to make changes with the goal of increasing long-term stock value and thus creating a profit for ValueAct.

Rolls-Royce

In August 2020, the company sold all of the stake capital of Rolls-Royce. [5]

Microsoft

In May 2013 ValueAct Capital revealed that it had purchased $2 billion worth of Microsoft stock (less than 1%). Shortly thereafter the company announced that Steve Ballmer decided to leave Microsoft. The company subsequently announced an agreement to share information and work with ValueAct, as well as to give ValueAct an option to join the board of directors. It was speculated that pressure from ValueAct led to Ballmer's decision to leave the company but both Ballmer and Microsoft have said otherwise. [6] [7] Morfit joined the Microsoft Board of Directors in early 2014 and served until late 2017 during which time the company thrived under new CEO Satya Nadella.

The New York Times Company

ValueAct disclosed a 7% stake in The New York Times Company in August 2022. [8] ValueAct aims to encourage the company to more actively pursue the sale of "bundled" subscriptions to its various offerings. [8]

Salesforce

ValueAct disclosed a multi billion stake in Salesforce in January 2022. On January 27, Salesforce announced that it is appointing three new directors to the board, one of whom is Mason Morfit, CEO and CIO of ValueAct Capital.

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References

  1. "ValueAct Holdings, L.P. - Portfolio Holdings (13F, 13G) - Jeff Ubben".
  2. "ValueAct Holdings, L.P. - Portfolio Holdings (13F, 13G) - Jeff Ubben".
  3. Fortado, Lindsay (24 January 2020). "Mason Morfit takes charge at ValueAct — 13 years after being tipped". Financial Times.
  4. Reuters https://www.reuters.com/business/finance/valueact-names-hale-co-ceo-announces-partner-departures-strong-gains-letter-2023-08-04/.{{cite web}}: Missing or empty |title= (help)
  5. Hollinger, Peggy; Nauman, Billy (August 7, 2020). "ValueAct sells entire stake in Rolls-Royce". Financial Times . Retrieved August 7, 2020.
  6. "Tiff over, ValueAct's Morfit joins Microsoft's board". 12 March 2014.
  7. "Activist Shareholders Are Demanding a Board Seat at Microsoft". Business Insider .
  8. 1 2 Deveau, Scott (11 August 2022). "New York Times Is Targeted by Activist Investor Pushing for Subscriber-Only Bundles". Bloomberg.com. Retrieved 11 August 2022.

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