Last month activist hedge fund Starboard Value disclosed a 5.8% stake in Symantec Corp (NASDAQ:SYMC). It paid around $20 per share for 36 million shares of the company. Yesterday we learned that Starboard’s 3 nominees will join anti-virus software maker’s board. The stock is up more than 4% today, but this means Starboard is making only very small gains from its $700 million investment.
We analyzed the historical performance of Starboard Value’s 13F stock picks. Symantec Corp (NASDAQ:SYMC) is a mid-cap stock with a market capitalization of nearly $13 billion. Starboard Value’s mid-cap stock picks performed horribly since 2011. Starboard Value’s mid-cap stocks lost an average of 6.5% per year between 2011 and 2017. S&P 500 Index generated an average annual return of more than 12% per year during the same period.
We don’t think it is a good idea to imitate Starboard and buy Symantec. Don’t get us wrong. Starboard Value isn’t good at picking mid-cap stocks but it is good at picking other kinds of stocks (email us if you’d like to find out Starboard Value’s best stock picks).
We shared the details of Starboard’s 13D filing regarding Symantec Corp below:
Ownership Summary Table
|Name||Sole Voting Power||Shared Voting Power||Sole Dispositive Power||Shared Dispositive Power||Aggregate Amount Owned Power||Percent of Class|
|STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD||12,993,328||12,993,328||36,000,796||12,993,328||2.1%|
|STARBOARD VALUE AND OPPORTUNITY S||1,689,748||1,689,748||36,000,796||1,689,748||Less than 1%|
|STARBOARD VALUE AND OPPORTUNITY C||967,113||967,113||5,534||967,113||Less than 1%|
|STARBOARD VALUE R||967,113||967,113||967,113||Less than 1%|
|STARBOARD VALUE R GP||967,113||967,113||967,113||Less than 1%|
|STARBOARD LEADERS TANGO||1,198,198||1,198,198||1,198,198||Less than 1%|
|STARBOARD LEADERS FUND||1,198,198||1,198,198||1,198,198||Less than 1%|
|STARBOARD LEADERS SELECT VI||1,604,333||1,604,333||1,604,333||Less than 1%|
|STARBOARD LEADERS SELECT VI GP||1,604,333||1,604,333||1,604,333||Less than 1%|
|STARBOARD VALUE A||2,802,531||2,802,531||2,802,531||Less than 1%|
|STARBOARD VALUE A GP||2,802,531||2,802,531||2,802,531||Less than 1%|
|STARBOARD VALUE GP||36,000,796||36,000,796||36,000,796||5.8%|
|STARBOARD PRINCIPAL CO||36,000,796||36,000,796||36,000,796||5.8%|
|STARBOARD PRINCIPAL CO GP||36,000,796||36,000,796||36,000,796||5.8%|
|JEFFREY C. SMITH||750||750||36,000,796||5.8%|
|MARK R. MITCHELL||14,200||14,200||36,000,796||5.8%|
|PETER A. FELD||75,000||75,000||36,000,796||5.8%|
|NORA M. DENZEL||750||Less than 1%|
|DALE L. FULLER||14,200||Less than 1%|
|RICHARD S. HILL||75,000||Less than 1%|
|MICHAEL G. STRACHAN||5,534||Less than 1%|
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Page 1 of 27 – SEC Filing
SECURITIES AND EXCHANGE
Washington, D.C. 20549
INFORMATION TO BE INCLUDED
IN STATEMENTS FILED PURSUANT
TO § 240.13d-1(a)
AND AMENDMENTS THERETO FILED PURSUANT TO
(Amendment No. 1)1
$0.01 par value per share
(Title of Class of Securities)
777 Third Avenue, 18th Floor
New York, New York 10017
STEVE WOLOSKY, ESQ.
ANDREW FREEDMAN, ESQ.
OLSHAN FROME WOLOSKY LLP
1325 Avenue of the Americas
New York, New York 10019
(Name, Address and Telephone Number of Person
Authorized to Receive Notices
September 16, 2018
(Date of Event Which Requires
Filing of This Statement)
the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule
13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following
filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See
§ 240.13d-7 for other parties to whom copies are to be sent.
The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to
the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided
in a prior cover page.
The information required
on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities
Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject
to all other provisions of the Act (however, see the Notes).