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ValueAct's Ubben says firm 'disinvesting' because of overheated valuations

NEW YORK, Feb 22 (Reuters) - Jeffrey Ubben, the chief executive of ValueAct Capital, told Reuters on Wednesday that his firm has been disinvesting in the capital markets as valuations have become overextended, leaving it with $3 billion in cash.

"I really feel that the large-cap activist plays are very treacherous with high PEs (price-to-earnings) and not a lot of growth," Ubben said, speaking at the Reuters "Future of Shareholder Activism" event in New York.

ValueAct, based in San Francisco, manages around $16 billion. The fund's largest holding is a $2.4 billion stake in Microsoft Corp, the software company where ValueAct partner Mason Morfit is also a board director.

(Reporting By Jennifer Ablan and Lawrence Delevingne; Editing by Jonathan Oatis)