In this article, we discuss Jeff Smith’s Top 10 Activist Targets and Their Returns Compared to the S&P 500.
Jeff Smith is arguably the “most feared man” in corporate America, having waged some of Wall Street’s most aggressive and successful activist campaigns. Having served on more than 17 companies’ boards and chairing four underscores his reputation as one of the most successful activist investors in unlocking shareholder value. Smith has become one of the most feared activist investors at the back of Starboard Value LP, a hedge fund he founded alongside two partners in 2011. Given that the hedge fund has targeted hundreds of companies, it underscores its strategy of conducting in-depth analysis to discover stocks trading below their fair value.
In return, Starboard Value LP has always waged activist campaigns and pushed for strategic changes that could bolster the company’s value. Part of the strategy entails pushing for board seats or management changes. The hedge fund is known to agitate for the potential sale of units or the entire business in the race for shareholder value. By targeting IT giants and consumer cyclical stocks over the past ten years, Smith has more than doubled the hedge fund’s assets under management to over $5.5 billion. In addition, the average market valuation of the companies that Starboard Value LP invested in was over $45 billion, up from about $7 billion in 2020.
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Over that period, Starboard Value LP established a reputation for making things difficult for executives and directors who disagreed with its change requests and occasionally fired them. Nevertheless, Jeff Smith’s strategy differs greatly from the more confrontational and widely publicized campaigns of fellow activist investors Carl Icahn and Bill Ackman. Following his appointment as Darden’s chair, he and other board members worked shifts to gain a close-up look at the company. Smith learned how to make pizza at Papa John’s restaurants, which he chaired before waging an activist campaign to unlock value.
Starboard Value LP returned less than 5% for investors in 2024, underperforming its peers. The poor performance occurred during a year when corporate America saw a massive upheaval in boardrooms as activist investors fought for change and showed off their muscles like never before. In 2024, activist funds produced an average return of 11.5%. ValueAct Capital Management, a competitor of Starboard Value LP, reported a 21% increase over that time as Sachem Head Capital Management delivered roughly 22% on capitalizing on the artificial intelligence-driven run in the markets.
Amid the underperformance in 2024, Jeff Smith’s hedge fund still stands out as one of the most successful activist hedge funds. Since its inception, the hedge fund has enjoyed an average return of 25.02% on its 152 activist campaigns, outperforming the Russell 200, which averaged 13.65% over the same period. With the current economic outlook in mind, let’s dive into our list of the Top 10 Jeff Smith activist targets and analyze their returns compared to the S&P 500.
Our Methodology
We sifted through financial media reports and settled on the activist investor’s biggest campaigns. We also computed their long-term returns compared to the S&P 500 since Starboard Value LP lodged its campaigns. The campaigns are ranked in chronological order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Jeff Smith’s Top 10 Activist Targets and Their Returns Compared to the S&P 500
10. GoDaddy Inc. (NYSE:GDDY)
Position Initiated: December 2021
Value of the Stake: $800 million
Stock Return Since December 2021 to April 2025: 145.24%
S&P 500 Return Since December 2021 to April 2025: 15.74%
Number of hedge funds holding stakes: 52
GoDaddy Inc. (NYSE:GDDY) is a software infrastructure company that engages in the design and development of cloud-based products. It offers domain registration, web hosting and digital marketing services. Activist investor Starboard Value LP acquired a 6.5% stake worth $800 million in the company in December of 2021 on concerns that the company was undervalued.
The hedge fund started agitating for changes, including changes to the board of directors and operational changes aimed at unlocking shareholder value. In 2024, Starboard Value LP piled pressure on the management, urging it to continue moving in the right direction by setting specific and realistic growth targets. Part of the targets entails achieving a 40% growth and profitability for fiscal 2025.
Additionally, the activist hedge fund believes GoDaddy Inc. (NYSE:GDDY) can achieve a free cash flow of $9 per share for fiscal 2025 and $14 per share for fiscal 2026. According to Starboard Value LP managing member Peter Feld, the growth can be achieved by discrete cost savings.
9. Salesforce, Inc. (NYSE:CRM)
Position Initiated: October 2022
Value of the Stake: N/A
Stock Return Since October 2022 to April 2025: 73.45%
S&P 500 Return Since October 2022 to April 2025: 40.82%
Number of hedge funds holding stakes: 162
Salesforce, Inc. (NYSE:CRM) is a software application company providing customer relationship management (CRM) technology that connects companies and customers. Jeff Smith confirmed a significant stake in the enterprise software maker in October of 2022 while reiterating a considerable opportunity that needs unlocking.
The investment came at a time when Salesforce had dropped 40% for the year on the back of disappointing financial results. Salesforce, Inc. (NYSE:CRM) was also under pressure for allegedly overspending and underperforming despite being a leader in customer relationship management software.
Amid the soaring activist pressure from Starboard Value LP and other investors, Salesforce, Inc. (NYSE:CRM) increased its operating margin above 40% in 2023. The improvement came with the company cutting thousands of jobs and moving up its timeline to widen the adjusted operating margin. The improvement came as Salesforce made significant changes to its management team by appointing three new board members to appease Starboard Value LP and other activist investors.
8. News Corporation (NASDAQ:NWS)
Position Initiated: October 2023
Value of the Stake: N/A
Stock Return Since October 2023 to April 2025: 38.12%
S&P 500 Return Since October 2023 to April 2025: 19.74%
Number of hedge funds holding stakes: 51
News Corporation (NASDAQ:NWS) is a diversified media, publishing, and digital real estate services company offering news, information, and cable network services. Starboard Value LP got involved in the company in October 2023 and started pushing for changes in Rupert Murdoch’s media empire.
From the onset, it promised to be an uphill test to push for changes in a company where the Murdoch family controlled 40% of the company’s voting shares. Over the past two years, Starboard Value LP has been pushing for the dissolution of the dual-class structure that gives the Murdoch family outside control of the company.
The activist hedge fund also wants News Corp to split off its highly valuable online retail businesses. Nevertheless, the hedge fund suffered its biggest blow yet after investors rejected a proposal to break the Murdoch family’s grip. News Corporation (NASDAQ:NWS) has always insisted that the current structure promotes stability.
7. Alight Inc. (NYSE:ALIT)
Position Initiated: February 2024
Value of the Stake: N/A
Stock Return Since February 2024 to April 2025: -44.90%
S&P 500 Return Since February 2024 to April 2025: 8.67%
Number of hedge funds holding stakes: 42
Alight Inc. (NYSE:ALIT) is a cloud-based human capital technology and services company that offers an intuitive, cloud-based employee engagement platform. Its platform services help organizations manage employee benefits, health, wealth, and well-being through its Alight Worklife platform. Activist hedge fund Starboard Value LP built a 7.8% stake in the company in February of 2024.
With the investments, the activist investor secured four seats on the US benefit services providers board and a voice to push for changes. With the appointments, Alight Inc. (NYSE:ALIT) switched its focus to higher growth and a higher margin model in anticipation of long-term value creation. Additionally, the company focused on conducting a strategic portfolio review to enhance its platform and well-being strategy.
Starboard Value LP securing seats on the board preceded the spinoff of the company’s payroll outsourcing business to HIG Capital for $1.2 billion. The sale was part of an effort to ensure Alight Inc. (NYSE:ALIT) becomes agile and competitive, able to strengthen its technology.
6. Autodesk, Inc. (NASDAQ:ADSK)
Position Initiated: June 2024
Value of the Stake: $500 Million
Stock Return Since June 2024 to April 2025: 17.40%
S&P 500 Return Since June 2024 to April 2025: -1.21%
Number of hedge funds holding stakes: 74
Autodesk, Inc. (NASDAQ:ADSK) is a technology company that provides 3D design, engineering, and entertainment technology solutions. It offers AutoCAD Civil 3D, a surveying, design and analysis software. In June of 2024, reports emerged that Starboard Value LP had bought about a $500 million stake in the company and was pushing for changes.
The activist investor reiterated there is something the company could do to improve its margins and make changes to the board. The pressure mounted as Starboard Value LP accused Autodesk of failing to disclose investigations in private conversation. Autodesk, Inc. (NASDAQ:ADSK) was the subject of an internal financial probe that sparked federal investigations that revealed misrepresentations of key financial metrics.
Meanwhile, the activist hedge fund intends to nominate a minority slate of directors to the board to try and turn around the company’s fortune. The hedge fund insists Autodesk, Inc. (NASDAQ:ADSK) has underperformed the broader markets in recent years. The push comes on Autodesk embarking on a restructuring drive that entails slashing 9% of the workforce as it tries to bolster its profit margins.
5. Match Group, Inc. (NASDAQ:MTCH)
Position Initiated: July 2024
Value of the Stake: N/A
Stock Return Since July 2024 to April 2025: -6.24%
S&P 500 Return Since July 2024 to April 2025: -4.65%
Number of hedge funds holding stakes: 50
Match Group, Inc. (NASDAQ:MTCH) is a communication services company that develops digital technology solutions and platforms to facilitate connections between people, with a focus on online dating. Even though the company is the global leader in online dating apps with over 45 brands, it has struggled in recent years. Consequently, Starboard Value LP amassed a 6.6% stake in the company in July of 2024 and started urging the company to explore a potential sale.
The activist hedge fund was pushing for a sale on concerns the company was struggling to revitalize its growth prospects as was the case during the pandemic. Starboard Value LP joined Elliott Investment Management and Anson Funds Management in pushing Match Group for strategic changes, with the company struggling for growth post-pandemic.
In a letter to the company’s board, Jeff Smith reiterated that Match Group, Inc. (NASDAQ:MTCH) had struggled to capitalize on its enviable market position in the online dating business. Consequently, he urged management to consider cost cuts and be more aggressive with buybacks to return value to shareholders. Additionally, the activist investor urged management to consider optimizing Tinder through product innovation.
4. Pfizer Inc. (NYSE:PFE)
Position Initiated: October 2024
Value of the Stake: $1 Billion
Stock Return Since October 2024 to April 2025: -24.46%
S&P 500 Return Since October 2024 to April 2025: -6.36%
Number of hedge funds holding stakes: 92
Pfizer Inc. (NYSE:PFE) is a pharmaceutical giant that discovers, develops, and provides medicines and vaccines to improve people’s lives. Activist hedge fund Starboard Value LP amassed a $1 billion stake in the company in October of 2024 and started agitating for strategic changes, concerned that the company was heading in the wrong direction.
According to Starboard Value LP, Pfizer Inc. (NYSE:PFE) has erased more than $20 billion in market value since 2019 despite receiving $40 billion from the sale of Covid 19 vaccines. Part of the changes included pushing for management changes. The activist hedge fund was believed to have approached former CEO Ian Read and ex-finance chief Frank D’Amelio to try and spearhead a turnaround. Starboard Value LP had raised concerns that the leadership had steered away from the disciplined cost structure and investment in novel drugs, a move that was hurting its margins and long-term prospects.
An expensive acquisition strategy that saw Pfizer Inc. (NYSE:PFE) spending nearly $70 billion did not go well with the investors. Meanwhile, Starboard Value LP has yet to find its way into the company, having fallen short of ousting the current leadership, let alone nominating any directors to the board ahead of the January 25 deadline. Nevertheless, the hedge fund could still push for changes through the 2026 director vote.
3. Kenvue Inc. (NYSE:KVUE)
Position Initiated: October 2024
Value of the Stake: N/A
Stock Return Since October 2024 to April 2025: 3.92%
S&P 500 Return Since October 2024 to April 2025: -8.69%
Number of hedge funds holding stakes: 38
Kenvue Inc. (NYSE:KVUE) is a household and personal products company that focuses on everyday care. Its portfolio includes iconic brands like Aveeno, BAND-AID, and Tylenol. Activist investor Starboard Value LP first took stakes in the company in October of 2024 and urged management to consider strategic alternatives to improve the share price.
The activist investor started pushing for management changes as one of the ways of tweaking Kenvue Inc.’s (NYSE:KVUE) direction. It has since gotten its way after securing the right to appoint three new directors to the board as part of an agreement to end a proxy fight.
The board appointments ended nearly four months of back and forth as Starboard Value LP accused management of lackluster performance, especially in the skin health and beauty segment. Jeff Smith has since joined the board and is expected to push for other strategic changes aimed at unlocking shareholder value.
2. Healthcare Realty Trust Incorporated (NYSE:HR)
Position Initiated: November 2024
Value of the Stake: N/A
Stock Return Since November 2024 to April 2025: -11.14%
S&P 500 Return Since November 2024 to April 2025: -10.35%
Number of hedge funds holding stakes: 29
Healthcare Realty Trust Incorporated (NYSE:HR) is a real estate investment trust (REIT) that owns and operates medical outpatient buildings in market-leading hospital campuses. Its portfolio includes over 650 properties. Starboard Value LP confirmed a 5.9% stake in the company on November 26 2024, and started pushing for board seats in a bid to influence decision-making.
The activist investor struck an agreement with the healthcare-focused REIT and secured four seats on the board, including an independent chair of the board. The push for board seats came on Starboard Value LP remaining concerned with the impact of the $18 billion acquisition of Healthcare Trust of America in 2022.
Following the integration of the acquisition, property operating expenses skyrocketed to 37% from 31%, with the stock going down by about 15%. With a voice on the board, Starboard Value LP remains well-positioned to push for initiatives that unlock value from the acquisition and bolster operating margins.
1. Riot Platforms Inc. (NASDAQ:RIOT)
Position Initiated: December 2024
Value of the Stake: N/A
Stock Return Since December 2024 to April 2025: -43.67%
S&P 500 Return Since December 2024 to April 2025: -10.32%
Number of hedge funds holding stakes: 37
Riot Platforms Inc. (NASDAQ:RIOT) is a Bitcoin mining and digital infrastructure company. It operates Bitcoin mining and data centers in Texas and engineering and fabrication facilities in Colorado. Activist investor Starboard Value LP acquired a significant stake in the company in December of 2024 amid expectations of operational and value-creation opportunities.
Starboard Value LP’s investment came as Bitcoin was edging higher on expectations of a friendly regulatory environment on Donald Trump winning the 2024 presidential elections. The investment also came amid reports that the hedge fund had been in discussions with the management team about the possibility of converting some of the company’s bitcoin mining facilities into a capacity for hyperscalers or large data center users to capitalize on the artificial intelligence boom.
Due to AI mania, several other Bitcoin miners have been competing to exploit the shortage of data center space and the high power requirements. In order to provide power infrastructure for the cloud computing company’s operations, Starboard Value LP wants to see Riot Platforms Inc. (NASDAQ:RIOT) following in the footsteps of bitcoin miner Core Scientific.
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