Jeffrey Smith’s Starboard Value LP has filed its 13F with the SEC for the reporting period of June 30, 2015. The investor is known for his activist positions in undervalued as well as average-performing companies. He uses fundamental analysis to understand the real value of a stock and make an investment accordingly. According to his 13F filing, the investment manager has a public equity portfolio worth $4.43 billion, with its top ten stock holdings accounting for 80.62% of its portfolio’s value. Macy’s, Inc. (NYSE:M), BWX Technologies Inc (NYSE:BWXT), and Edgewell Personal Care Co (NYSE:EPC) are among the top new positions of the investment firm, moves which we’ll study below.
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Starboard Value LP showed its interest in Macy’s, Inc. (NYSE:M) in July, revealing that it felt the vast real estate holdings of the retailer were undervalued. The investment firm has now revealed its position in the company, of 2.92 million shares valued at $197.32 million. According to the investment firm, the retailer’s real estate is worth at least $21 billion and considering the market cap of $21.31 billion, those holdings and the retail business of Macy’s, Inc. (NYSE:M) are not being properly appraised by investors. Mr. Smith further said that his firm will push for the spin-off of the real estate holdings of the company and added that the management of the retailer was receptive to the idea. The involvement of one of the great activist investors in the world is excellent news for shareholders, as activist investors work to bring forth the maximum value for shareholders and Smith does it better than most. David Einhorn’s Greenlight Capital is another major shareholder of the company, with a reported stake worth $68.77 million, consisting of 1.02 million shares of the retailer.
BWX Technologies Inc (NYSE:BWXT) is another company to attract the attention of Jeffrey Smith, who had 1.49 million shares valued at $48.97 million of the company on June 30. The technology company provides components for nuclear power generation and mPower reactors. BWX Technologies Inc (NYSE:BWXT) completed the spin-off of its power generation business in July, with the newly-formed company operating under the name Babcock & Wilcox Enterprises, Inc. John A. Fees, Executive Chairman of BWX Technologies, said, “As a standalone company, BWXT will have greater management focus on the distinct business of government and nuclear operations. We will also have greater ability to attract an investor base suited to our Company’s specific operational and financial characteristics.” BWX Technologies Inc (NYSE:BWXT) announced its second quarter 2015 financial results on August 5, missing the market’s earnings estimate of $0.55 with reported EPS of $0.32. Its reported revenue of $357.1 million also came in shorter than Wall Street’s estimate of $360.6 million. Carlson Capital, led by Clint Carlson, is another investment firm in our database with a position in BWX Technologies Inc (NYSE:BWXT), in this case a 575,000-share position with a market value of $18.86 million.
Jeffery Smith has also initiated a new position in Edgewell Personal Care Co (NYSE:EPC), holding 343,900 shares valued at $45.24 million on June 30. The personal care products company is another business with a fresh operating structure after the spin-off of its household products arm. Under the terms of the spin-off, the shareholders of record of Edgewell as of June 16 received one share of the new household product company, Energizer Holdings Inc (NYSE:ENR), for each share of Edgewell. David Hatfield, CEO of Edgewell Personal Care Co (NYSE:EPC), said, “…We are excited about Edgewell’s prospects, as we leverage our strong brands and build upon leading positions across various categories. As a company now solely dedicated to Personal Care, we will focus on accelerating top line growth, and increasing our emphasis on insight, innovation, and agility.” Edgewell Personal Care Co (NYSE:EPC) announced combined fiscal third quarter 2015 financial results of net sales of $1.05 billion and adjusted net earnings per diluted share of $1.17. Israel Englander’s Millennium Management reported an investment position in the company at the end of the second quarter of 260,634 shares valued at $34.25 million.
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