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Jeffrey Ubben & ValueAct Capital Go Activist On Alliance Data Systems (ADS)

Activist investor Jeffrey Ubben has turned his attention towards Alliance Data Systems Corp (NYSE:ADS), a company which his fund ValueAct Capital first took a position in during the first quarter. According to a recent filing with the Securities and Exchange Commission, Mr. Ubben and his team have control over 4 million shares of the company, up from 541,115 shares reported in the fund’s latest 13F filing. The current position amounts to 6.8% of the company’s common stock. In its filing, ValueAct Capital has noted that it intends to hold discussions with Alliance Data Systems’ management and Board of Directors about opportunities to enhance shareholder value.

A provider of data-driven marketing and loyalty programs for consumer-based businesses, Alliance Data Systems Corp (NYSE:ADS) has a market cap of $11.8 billion and does not pay a dividend. The stock is currently trading at a trailing Price-to-Earnings (P/E) ratio of 22, significantly lower than the industry average of 37, according to data compiled by Yahoo! Finance. So far this year, the stock has performed poorly, having failed to recover from a January selloff. Shares ended Friday’s trading session at $200.96 apiece, down by 26% for the year. Alliance Data Systems is set to release its second quarter financial report on July 21, before the opening bell, with investors looking for $1.64 billion in revenue and earnings of $3.61 per share.VALUEACT CAPITAL

The popularity of Alliance Data Systems Corp (NYSE:ADS) among the hedge funds followed by Insider Monkey surged during the first quarter, with the number of long positions rising to 34 as of the end of March, up from 25 positions registered as of the end of 2015. Billionaire Steve Cohen was among those buying the stock, as his family office, Point72 Asset Management, boosted its stake in the company by 827% to 269,100 shares. Jim Simons’ Renaissance Technologies has also stepped up its interest in the equity, lifting its holding to 245,542 shares by the end of March.

You can access the original SEC filing by clicking here.

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Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
ValueAct Capital Master Fund, L.P. 0 0 4,000,000 4,000,000 6.8%
VA Partners I, LLC 0 0 4,000,000 4,000,000 6.8%
ValueAct Capital Management, L.P. 0 0 4,000,000 4,000,000 6.8%
ValueAct Capital Management, LLC 0 0 4,000,000 4,000,000 6.8%
ValueAct Holdings, L.P. 0 0 4,000,000 4,000,000 6.8%
ValueAct Holdings GP, LLC 0 0 4,000,000 4,000,000 6.8%
Jeffrey Ubben
Jeffrey Ubben
ValueAct Capital

Page 1 of 13 – SEC Filing

Washington, D.C. 20549
Under the Securities and Exchange Act of 1934

Alliance Data Systems Corporation
(Name of Issuer)

Common Stock
(Title of Class of Securities)

(CUSIP Number)

Allison Bennington, Esq.
ValueAct Capital
One Letterman Drive, Building D, Fourth Floor
San Francisco, CA 94129
(415) 362-3700
(Name, address and telephone number of Person
Authorized to Receive Notices and Communications)

Allison Bennington, Esq.
ValueAct Capital
One Letterman Drive, Building D, Fourth Floor
San Francisco, CA 94129
(415) 362-3700

June 28, 2016
(Date of Event which Requires Filing of this Statement)

If 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 box [ ].

Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 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.

This 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).

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