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CACI International Inc (CACI): Blue Harbour Group Continues to Reduce Its Stake

Clifton S. Robbins Blue Harbour Group reduced its stake in CACI International Inc (NYSE:CACI) by around 1.18 million shares. According to the 13D Form filed with the U.S. Securities and Exchange Commission, the investment firm now holds a position of 1.1 million shares, representing 4.9% of the company’s outstanding stock. The fund has been trimming its exposure to CACI International regularly since the third quarter of 2014.

Clifton Robbins Blue Harbour

Blue Harbour Group was founded in 2004 as an activist hedge fund and is currently managed by Clifton S. Robbins. In order to expand its client base, the firm recently started a long-only fund, although its flagship fund also invests in short positions. The Greenwich, Connecticut based company tends to acquire large positions in public equities, seeking to increase their value by working together with management. This collaboration aimed at designing and implementing strategies to unlock shareholder value, usually takes place over a two-to-three-year period. Blue Harbour Group is mainly interesting in fundamentally undervalued stocks that are trading at a discount relative to their intrinsic value. Furthermore, the investment firm currently boasts an equity portfolio valued at around$2.5 billion, with 40% of its holdings stemming from the information technology industry. The fund’s three largest positions as of the end of the third quarter of 2014, were Akamai Technologies, Inc. (NASDAQ:AKAM), Rackspace Hosting, Inc. (NYSE:RAX), and Rowan Companies PLC (NYSE:RDC).

CACI International Inc (NYSE:CACI) has been part of Blue Harbour Group’s equity portfolio since the second quarter of 2009. While the stock was one of its top 10 picks during 2014, the investment firm is currently shifting its focus towards its three largest holdings. Nevertheless, Blue Harbour Group’s stake in CACI International surely paid off, as the stock gained around 130% since the fund entered the position.

Although Blue Harbour Group has been reducing its exposure to CACI International Inc (NYSE:CACI), other institutional investors remain bullish. Wallace Weitz’ Wallace R. Weitz & Co. for example, disclosed a position of 314,400 shares as at the end of the third quarter. Ken Griffin’s Citadel Investment Group was even more optimistic, as it increased its stake in the company by more than 450% during this period, bringing its total holding to 269,700 shares. Although CACI International’s growth rate remained sluggish throughout most of 2014, the stock has gained almost 24% since October.

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