This Activist Investor’s Picks May Be Lagging But They Are Poised For Long-Term Growth

In Twenty-First Century Fox Inc (NASDAQ:FOX), ValueAct increased its stake the most, by 43% on the quarter to 44.58 million shares held as of the end of June. The stock lost 15% in the following three months and it is 19% in the red year-to-date, but the smart money is optimistic regarding its prospects as the number of funds with long positions in Twenty-First Century Fox Inc (NASDAQ:FOX) went up to 42 from 33 during the second quarter, while their stakes were equal to 7.90% of the outstanding stock of the company at the end of June. Andreas Halvorsen’s Viking Global is one of the investors that initiated a stake in Twenty-First Century Fox Inc (NASDAQ:FOX), reporting ownership of 8.09 million shares in its latest 13F filing.

Then there is American Express Company (NYSE:AXP), which represented the only new holding in ValueAct’s equity portfolio. The investor reported ownership of 11.10 million shares of the stock, which lost 4.6% during the third quarter. It has appreciated by 4.20% since the beginning of October, but it is down by over 17% year-to-date, with a significant part of this decline arising from the break-up of the AmEx and Costco Wholesale Corporation (NASDAQ:COST) relationship announced in February. Even though the deal will affect the company’s revenue, American Express Company (NYSE:AXP) is optimistic that it will be able to absorb the losses through new deals and cost cutting. Moreover, the company’s management has the support of Warren Buffett, with Berkshire being one of the largest shareholders of American Express Company (NYSE:AXP). Ubben has not disclosed his plans regarding the company, but the involvement of a great activist investor will most certainly unlock more value over the long-term.

Disclosure: None