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Where Could ValueAct Capital's New $1.5 Billion Go?

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Where Could ValueAct Capital's New $1.5 Billion Go?
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Activist hedge fund ValueAct Capital Management, run by Jeffrey Ubben, plans to raise up to $1.5 billion in new funds.

After roughly three years without bringing in new capital, the fund could use the proceeds to either increase the size of preexisting bets or open new positions.

One thing is quite certain, though: ValueAct invests with a longer term perspective than some of its peers and can commit to multi-year investments.

But where could the new money go?

The Obvious Two

As many investors already know, Ubben is quite bullish on Valeant Pharmaceuticals Intl Inc (NYSE: VRX). As the largest hedge fund shareholder of record, ValueAct has been increasing its exposure to the company over the fourth quarter.

Related Link: How 4 Tech Giants Are Resolving Challenges In China

According to the latest SEC filing, the fund owns more than 19.13 million shares.

This stake is of activist nature, and Ubben serves as a director on the company’s board. 

Another noteworthy position held by ValueAct is in Microsoft Corporation (NASDAQ: MSFT). The fund’s largest stake at the end of the third quarter of 2014 was, in fact, in the tech behemoth.

With participation in the board and a total allocation of more than $3.4 billion, Microsoft could be worth watching.

Other Ideas

Ubben has been betting on other companies lately too.

Agrium Inc. (USA) (NYSE: AGU) and Twenty-First Century Fox Inc (NASDAQ: FOXA) were both new positions for ValueAct in the third quarter.

Posted-In: Bill Ackman Jeffrey Ubben Pershing Square ValueActLong Ideas Hedge Funds Trading Ideas General Best of Benzinga

 

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