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Why Clifton Robbins and Other Hedge Funds Are Bullish On This Manufacturer of Agricultural Equipment

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Clifton S. Robbins is taking advantage of the recent market sell-off to buy AGCO Corporation (NYSE: AGCO) shares at a low. In a newly-amended filing with the Securities and Exchange Commission, Robbins’ fund, Blue Harbour Group, has disclosed an increase in its holding to approximately 6.52 million shares, up from 4.68 million shares reported in its latest 13F filing. As a result, Robbins now has control over 7.5% of the AGCO’s common stock, with the hedge fund industry having mixed sentiments towards the stock.

Clifton Robbins - Blue Harbour

An avid supporter of activist investing, Clifton Robbins stands out from the likes of Carl Icahn or Bill Ackman with his “friendly” approach to activism. He invests mainly in small- and mid-cap companies, whose management is open to collaboration, and has never engaged in a proxy contest or other aggressive tactics to increase his influence. Blue Harbour Group manages two funds: Blue Harbour Strategic Value Partners, a long/short fund, and the long-only Blue Harbour Active Ownership Partners. At the end of the second quarter, Blue Harbour reported an equity portfolio with a value of $3.42 billion, with 37% of the capital invested in technology stocks, while 25% were pledged to the industrial sector. AGCO Corporation (NYSE:AGCO), the subject of this article, is among the top five holdings of Clifton Robbins, who has increased his stake in the company by 23% during the second quarter. Rackspace Hosting, Inc. (NYSE:RAX) is still his top equity bet, with Blue Harbour holding 10.3 million shares at the end of June. Akamai Technologies, Inc. (NASDAQ:AKAM) is one stock Robbins decided to trim exposure to, cutting his stake by 10% to 4.93 million shares, while his investment in BWX Technologies Inc (NYSE:BWXT) has remained unchanged at 10.5 million shares as of June 30.

Clifton S. Robbins
Clifton S. Robbins
Blue Harbour Group

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