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.

Tessera Technologies Inc. (TSRA): Starboard Value Still Bullish, But Trims Stake By 20% As Stock Appreciates

Last Thursday, Jeffrey Smith’s Starboard Value LP disclosed a reduction in its wage on Tessera Technologies, Inc. (NASDAQ:TSRA). This stake, which has an activist nature, was trimmed by 20%; following the disposal of 989,084 shares, the fund owns 3.76 million shares of Common Stock, which represent 7.1% of the company’s outstanding stock.

Starboard Value LP is a New York City-based hedge fund sponsor, founded in March 2011, as a spin-off from Ramius. The investment strategy goes back to 2002, when Jeff Smith and Mark Mitchell founded it. They were later joined, in 2005, by Starboard’s third Managing Member, Peter Feld. According to their own site, “Starboard invests in deeply undervalued companies and actively engages with management teams and boards of directors to identify and execute on opportunities to unlock value for the benefit of all shareholders.”

Jeff Smith

Tessera Technologies, Inc. (NASDAQ:TSRA) is a $1.86 billion market cap holding company with operating subsidiaries in two segments: Intellectual Property and DigitalOptics. It’s stock is up about 77% year-to-date and, according to Starboard’s latest 13D filing, the fund sold a portion of its stock, mainly to rebalance its equity portfolio (in light of this appreciation). Notwithstanding, Starboard remains a large shareholder of the company (and intends to remain this way). In addition, Mr. Feld continues as an active member of Tessera’s Board.

As it may be induced from the previous statement, this is not to be interpreted as a bearish move. Starboard continues to bet on Tessera Technologies, Inc. (NASDAQ:TSRA), same as Paul Orlin And Alex Porter’s Amici Capital, which held roughly 3.15 million shares of the company as of the end of the third quarter. Another major institutional investor that has been profiting from this company is Steve Cohen’s Point72 Asset Management, which reduced its stake by 44% over the third quarter, but still owns 1.2 million shares.

As an activist fund, Starboard has been pretty active in other companies, too. Most recently, it initiated a stake, with 7.2% of the stock, in Integrated Silicon Solution, Inc. (NASDAQ:ISSI) and formed a stockholder group with several other shareholders, and then sent a letter to the President and CEO, Scott Howarth, outlining the reasons behind the stock’s undervaluation. The fund also reduced its position in DSP Group, Inc. (NASDAQ:DSPG), to 1.04 million shares, down from 1.35 million shares reported in an earlier filing.

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.