Valueact Capital, managed by Jeffrey Ubben finished first quarter ending March 31, 2013 on a high, appreciating by 9.7% after payment of all fees and expenses. Since its inception in 2000, the fund has appreciated by 16.6% on a net annualized basis with key company positions in Halliburton Company (NYSE:HAL), C.R. Bard, Inc. (NYSE:BCR), Microsoft Corporation (NASDAQ:MSFT) and Gardner Denver, Inc. (NYSE:GDI), etc. Recovering global economy has seen an increase in valuation for the likes of Moody’s Corporation (NYSE:MCO) and Gardner Denver, Inc. (NYSE:GDI) by 10% in cash-on-cash valuation.
During the first quarter of 2013 Value Act Capital realized its investments in Moody’s Corporation (NYSE:MCO), Halliburton Company (NYSE:HAL) and Gardner Denver, Inc. (NYSE:GDI) as well as agreeing to be acquired by KKR in a LBO. Value Act Capital’s investments in Moody’s Corporation (NYSE:MCO) paid off as the company’s earnings and multiple expanded having been bought on the thesis that the Federal Reserve monetary policy of low-interest rates was conducive. The stock of Moody’s Corporation (NYSE:MCO) increased by 67.71% from the beginning of the second quarter of 2013.
Valueact Capital projection on Halliburton Company (NYSE:HAL) meeting supply needs for big new players in North American land production, proved to be correct for the quarter. Halliburton Company (NYSE:HAL) strong stock performance was, on the other hand, impacted by higher valuation on improved psychology for future-upturn in activity. The stock of Halliburton Company (NYSE:HAL) has jumped 73.68% since the first quarter of 2013.
As of the end of the first quarter Valueact Capital had sold approximately $144 million of its position in C.R. Bard, Inc. (NYSE:BCR), a position that was built from 2009 to 2010 at approximately $80 a share. Depressed healthcare spending and changing procurement practices have greatly affected the company’s stock price over the past years. C.R. Bard, Inc. (NYSE:BCR)’s stock has increased by 45.51% from the beginning of the second quarter of 2013.
During the first quarter, Value Act Capital initiated three new investments in the name of MICROS Systems, Inc. (NASDAQ:MCRS), Invensys PLC and Microsoft Corporation (NASDAQ:MSFT). The shares of Microsoft Corporation (NASDAQ:MSFT) surged by 45.72% from the third quarter of 2013.
Valueact Capital took advantage of MICROS Systems, Inc. (NASDAQ:MCRS)’s share price weakness to make an investment in the company after 10 years of following and admiration. The company initiated its position in MICROS Systems, Inc. (NASDAQ:MCRS) at an average cost of $42.73 per share. The stock of MICROS Systems, Inc. (NASDAQ:MCRS) increased by50.02% from July 2013.
Investment in Invensys also follows 5-years of following including holding meetings with current and former CEO’s. Value Act Capital holds a 7% position in Invensys at a cost of 3.40 a share.
Disclosure: none
