In this article, we’re going to take a look at 5 activist targets of ValueAct Capital and their long-term returns. To get a better understanding about ValueAct Capital and see more companies from its portfolio, take a look at Long Term Returns of ValueAct Capital’s Activist Targets.
5. KKR & Co Inc (NYSE:KKR)
Quarter first owned: Q2 2017
Quarter sold: N/A
ValueAct initiated a stake in KKR & Co Inc (NYSE:KKR) during the second quarter of 2017, and continues to maintain a position in the company. In its latest 13F filing, ValueAct reported ownership of 20.54 million shares. KKR & Co Inc (NYSE:KKR)’s stock is up by 190% since the second quarter of 2017. Soon after initiating a stake in the company, ValueAct’s Mason Morfit mentioned KKR & Co Inc (NYSE:KKR) at the Active-Passive Investor summit and said the company has built a strong name for itself among Leveraged-Buyout firms and has a bright future ahead of it. The fund hasn’t yet made any publicly-known moves towards the company and hasn’t sought board representation.
4. Seagate Technology Holdings PLC (NASDAQ:STX)
Quarter first owned: Q2 2016
Quarter sold: N/A
Another company that ValueAct still maintains in its portfolio is Seagate Technology Holdings PLC (NASDAQ:STX), with the fund owning around 13.44 million shares, according to its latest 13F filing. The investment has played out nicely so far, with the stock gaining more than 200% since April 2016. As opposed to the usual play, where the fund approaches the company, Seagate Technology Holdings PLC (NASDAQ:STX) welcomed ValueAct and offered an observer board position. Later the company appointed ValueAct’s Dylan Haggart to its board.
3. Gartner Inc (NYSE:IT)
Quarter first owned: Q4 2001
Quarter sold: Q4 2011
Gartner Inc (NYSE:IT) is one of the most long-term investments of ValueAct Capital, the fund holding shares of the company for a period of around 10 years, seeing the stock nearly quadruple. Jeff Ubben himself was a board member at the technological research and consulting firm. During ValueAct’s involvement, Gartner group launched an acquisition streak that started with Meta Group which the company bought in 2005 and AMR Research, Inc. in 2009. Acquisitions continued after ValueAct’s departure and helped transform Gartner Inc (NYSE:IT) into one of the leading IT research and consultancy firms.
2. CBRE Group Inc (NYSE:CBRE)
Quarter first owned: Q3 2011
Quarter sold: N/A
In CBRE Group Inc (NYSE:CBRE), ValueAct initiated a position during the third quarter of 2011 and continues to maintain 9.24 million shares as of the end of June 2023. The stock appreciated by around 160% since ValueAct added it to its equity portfolio. ValueAct has been closely involved with CBRE Group Inc (NYSE:CBRE), with its President and Partner Brandon Boze joining the board and 2012 and currently holding the board chair position.
Another investor bullish on CBRE Group Inc (NYSE:CBRE) is Third Avenue Management. In a recent investor letter, Third Avenue Management said that CBRE Group Inc (NYSE:CBRE) is likely to gain market share within its segment and “capitalize on other secular trends and ancillary opportunities longer-term (e.g., outsourcing, sustainability, “flex” offerings, et al).”
1. Bausch Health Companies Inc (NYSE:BHC)
Quarter first owned: Q3 2006
Quarter sold: Q3 2022
Last but not least among ValueAct Capital’s long-term activist targets is Bausch Health Companies Inc (NYSE:BHC), a healthcare company previously known as Valeant Pharmaceuticals. As the company faced a lot of issues back in 2016, ValueAct managed to sell a huge chunk of the stock months before the stock tanked. At one point in 2015, ValueAct’s profit on the investment amounted to more than 2,000%, as it managed to acquire shares at around $11 apiece and the stock was trading at $250.
As a major investor in Valeant, ValueAct was the key decision-maker behind the appointment of former CEO Michael Pearson, under whose helm the company first surged, but then dove into the ground. At the same time, ValueAct was against the hostile takeover of Allergan, which was driven by another activist investor, Bill Ackman. According to a Reuters interview, Jeff Ubben, who was on Valeant’s board said that while the combination of Valeant and Allergan could prove fruitful, a bidding war for the botox maker would not be worth it. In the end Allergan entered into a deal to be acquired by Actavis. This marked the beginning of troubled times for Valeant, with CEO Pearson later resigning and the company eventually transforming into Bausch Health Companies Inc (NYSE:BHC). ValueAct maintained a position in Bausch Health Companies Inc (NYSE:BHC) and even had a board seat until June 2021, leaving the company as it spun-off its eye care business into Bausch + Lomb Corp (NYSE:BLCO).
