ValueAct Capital Q4 2009 Portfolio Moves

The current issue of Barron’s carries a brief article on activist hedge funds[$] and makes brief mention of ValueAct Capital as being one of the elite activist funds, who as a group averaged gains of 144% in companies where they filed 13D forms. Readers can scan ValueAct’s holdings in spreadsheet form here but be warned that the 13F-HR filing does not disclose any information as to which companies they are mounting campaigns against. ValueAct doesn’t typically come into a new position with guns blazing but they will take a more active stance if the situation warrants.

  • Three new positions include Kar Auction Services (KAR), Snap-On Inc (SNA) and Warner Chilcott PLC (WCRX).
  • Divestitures include Equifax (EFX), Gen-Probe (GPRO) and Thomson Reuters (TRI).
  • Strong conviction moves include an 80% re-up on CR Bard (BRC) and selling a quarter of the stake in Alliance Data Systems (ADS).

ValueAct also runs a small-cap operation, which lists their holdings in a separate 13F-HR filing. For smaller investors, this ground may be more fertile but requires more research and vigilance as some of the names are obscure. You can view their holdings in spreadsheet form and read on for a quick summary.

  • The two largest new positions were Masimo (MASI), a medical devices company and Microsemi (MSCC), a semiconductor company.
  • ValueAct Small Cap divested several, relatively small positions including tech companies, ValueClick (VCLK) and  Cymer (CYMI).
  • They added substantially to Immucor (BLUD), which is now the third largest holding by value shown in the filing. The fund also doubled down on Transdigm Group (TDG), which operates in the aerospace industry.
  • Two previously substantial stakes were greatly reduced — Global Cash Access Holdings (GCA) and Bway Holdings (BWY).

View both filings in spreadsheet format:

See other managers’ 13F-HR filings here.

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