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Assessing ValueAct Capital Management’s fourth quarter positions

Smita Nair

Assessing ValueAct Capital Management's fourth quarter positions (Part 1 of 8)

ValueAct’s 4Q investments

ValueAct Capital Management (VAC) is a San Francisco–based investment company that manages more than $12 billion on behalf of several institutional and individual investors. The firm was founded in 2000 and is led by its founding partners, Jeffrey Ubben and George Hamel, Jr.

ValueAct’s fourth quarter U.S. long portfolio was worth $12 billion, up from $11.8 billion in the third quarter. ValueAct initiated a new position in Dresser-Rand Group, Inc. (DRC). It sold its stakes in CF Industries (CF), The Mosaic Company (MOS), and Valero Energy Corporation (VLO). The fund increased positions in Allison Transmission Holding (ALSN) and MSCI Inc. (MSCI). It reduced its stake in Adobe Systems Incorporated (ADBE).

ValueAct Capital is typically one of the largest independent shareholders at each of its core investments. VAC’s investment approach differs from typical “activist” investors that often act in a hostile manner to attempt to effect desired changes. In contrast, VAC builds constructive long-term relationships with management teams or boards and implements positive changes to unlock shareholder value. VAC has a well-diversified client base, including endowments, foundations, high net worth individuals and families, corporate clients, and funds-of-funds.

ValueAct 4Q

Continue to Part 2

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