Tensile Capital is an employee owned hedge fund sponsor based in San Francisco, California. It was founded in 2012 by Douglas Dossey and Arthur Young, its current managers. So far, the fund has invested mainly in services and technology stock, but its portfolio contains consumer goods and financial companies as well.
Douglas John Dossey serves as the Managing Partner and Co-portfolio Manager at Tensile Capital. Prior to this, he held different roles across the spectrum of the financial services’ landscape, ranging from investment banks to boutique firms. Mr. Dossey earned a B.S. in Accountancy (High Honors) from the University of Illinois and passed the Certified Public Accountant Examination in 1995.
Arthur Chiakai Young serves as the Managing Partner and Co-portfolio Manager at Tensile Capital. Prior to Tensile, Mr. Young has had stints with Blum Capital Partners, Blavin & Company, Fir Tree Partners and various others financial services firms. Mr. Young earned a BA in Economics (Hons) from Johns Hopkins University and a J.D from the University of California at Berkeley’s Boalt Hall School of Law.
The fund has recently filed its first 13F report with the Securities and Exchange Commission, for the quarter ending December 31, 2013. Let’s have a look at Douglas Dossey and Arthur Young’s top stock picks.
The top dog is TIBCO Software Inc. (NASDAQ:TIBX). Tensile Capital has reported ownership of 2.0 million shares worth approximately $45.1 million. The company is a provider of infrastructure and business intelligence software. It has a market cap of $3.5 billion, a trailing Price to Earnings (P/E) ratio of 43.5 and a beta of 1.47. In addition to Tensile Capital, other large shareholders of TIBCO Software Inc (NASDAQ:TIBX) include Clint Carlson’s Carlson Capital, which holds 3.3 million shares, and Soros Fund Management, led by George Soros, with 1.8 million shares.
Second place goes to Informatica Corp (NASDAQ:INFA), a company that provides enterprise data integration and data quality software and services, headquartered in California. According to Tensile Capital’s 13F report, the fund holds approximately 943,300 shares valued at $39.2 million. The company has a market cap of $4.5 billion. Shares are changing hands at a P/E ratio of 54.0 and a beta of 1.28. Some of the largest stakeholders of Informatica Corp (NASDAQ:INFA) are Matt Sirovich and Jeremy Mindich’s Scopia Capital, which owns 3.6 million shares valued at $150.6 million, followed by Eric’s Bannasch’s Cadian Capital, which holds 1.7 million shares worth $68.3 million.
Next up is Expeditors International Washington Inc. (NASDAQ:EXPD) Tensile owns 790,000 shares valued at $35.0 million. The company is based in Seattle, Washington and is a provider of global logistics services. The company trades at a P/E of 23.5 and has a market cap of $8.1 billion and a beta of 1.02. Charles De Vaulx’s International Value Advisors and Chuck Royce’s Royce & Associates hold 5.1 million and 972,600 shares of the logistics company, respectively.
Xerox Corp (NYSE:XRX) is also among the fund’s biggest bets. Tensile Capital reported owning 2.8 million shares valued at $34.6 million. The $13.1 billion market cap company is a provider of services and technology. In addition to Tensile Capital, other largest shareholders of Xerox Corp (NYSE:XRX) are Larry Robbins’s Glenview capital, which holds 9.34 million shares, and Cliff Asness’ Aqr Capital Management, which owns 5.46 million shares of the global giant.
Ending the top 5 picks is the North American retailer of transportation fuels and convenience goods, CST Brands, Inc (NYSE:CST). Tensile Capital holds approximately 706,200 shares reportedly worth $25.9 million. CST Brands, Inc (NYSE:CST) has a market cap of $2.5 billion. Some of the largest stakeholders of the retailer are Abrams Capital Management, led by David Abrams, which owns 3.0 million shares, followed by Brian Jackelow’s Sab Capital Management, who holds 2.3 million shares.