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Hedge Funds Have This To Say About These Two Activist Targets

In a freshly-submitted Schedule 13D filing with the SEC, Scott Ferguson’s Sachem Head Capital disclosed an activist stake of 12.89 million shares in Autodesk Inc. (NASDAQ:ADSK), representing 5.7% of the company’s outstanding shares. This represents a new position for Sachem Head Capital, as its 13F filing for the June quarter did not disclose any long position in the company. The investment firm stated its belief that the shares of the leader in 3D design, engineering and entertainment software are undervalued and represent an attractive investment opportunity. Similarly, Sachem Head Capital’s team may also discuss with the company’s management, Board of Directors, and other interested parties regarding Autodesk’s business, management, operations, and assets, among other things. Simply put, the investment management firm might have stumbled upon some opportunities for creating or unlocking shareholder value at Autodesk, and will now seek to implement them. Just recently, Autodesk Inc. (NASDAQ:ADSK) reiterated its business outlook for the third quarter and full year of fiscal year 2016. Hence, the company anticipates its fiscal third quarter revenues to be in the range of $580 million-to-$600 million, and non-GAAP earnings per share in the range of $0.05-to-$0.10 (read more details). Shares of Autodesk have risen by 7.35% this morning on the news of Sachem Head’s activist position.

Scott Ferguson
Scott Ferguson
Sachem Head Capital

Moving on to the stock’s popularity among the hedge funds tracked by our team, the number of top money managers invested in Autodesk decreased to 45 from 48 during the June quarter. By the same token, the value of their investments also decreased to $2.25 billion from $2.52 billion during the three-month period. It is worth pointing out that these hedge funds accumulated 19.70% of the company’s shares at the end of June. Stephen Mandel’s Lone Pine Capital was one of the largest equity holders of Autodesk Inc. (NASDAQ:ADSK) at the end of the second quarter, holding a 6.16 million-share stake.

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