Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Jeff Smith, Starboard Value Intend to Sell Shares of Office Depot

Jeff Smith‘s fund Starboard Value has just disclosed, in a newly amended filing with the Securities and Exchange Commission, that it intends to sell shares of Office Depot Inc (NYSE:ODP). The fund has signed a sales plan agreement letter, according to which, J.P. Morgan Securities LLC will act as the agent and sell the shares held by Starboard.

Jeff Smith

Starboard currently holds 42.1 million shares of Office Depot, the stake representing 7.9% of the outstanding common stock. The holding is one of the largest in the equity portfolio of Jeff Smith’s fund. According to the filing, Starboard’s position is activist by nature.

According to the letter, the plan is intended to be completed until the end of September, 2014. J.P. Morgan should sell shares on each trading day during the execution of the Sales Plan, unless there is a Market Disruption Event. The amount of shares that shall be sold has not been identified in the letter.

The move is meant to rebalance Starboard’s portfolio, amid  the surge of the company’s stock price since the fund first purchased the shares over a year ago, the filing stated. The stock of Office Depot has been gaining momentum, and is already up by over 64% since the beginning of the year.

In addition to Starboar, some other notable “hedgies” has also been holding shares of Office Depot. According to our database, Tig Advisors, managed by Carl Tiedemann and Michael Tiedemann, holds around 13.4 million shares, followed by D. E. Shaw‘s D E Shaw, and Barry Rosenstein‘s Jana Partners, which own some 2.5 million shares and 2.0 million shares respectively.

Last week, Jeff Smith’s fund reported slicing its exposure at another company, Emulex Corporation (NYSE:ELX). As we stated earlier, Starboard cut its stake in the company to some 5.3 million shares, equal to 5.8%, from 7.3 million shares held earlier.

Starboard is a fundamental-focused hedge fund, which invests primarily in small-cap stocks.

Disclosure: none

Recommended Reading:

Brian Taylor’s Pine River Capital Management Initiate Stake in Yongye International

David Einhorn, Greenlight Capital Sell 2.5 Mln Shares of Einstein Noah Restaurant Group

John Burbank, Passport Capital Add to Position in

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.