Profiles >> Starboard Value LP

Starboard Value LP

Last Updated: 12/3/2020

Starboard Value LP is a Limited Partnership that started in 2011 and is primarily owned and controlled by Jeffrey Smith and Peter Feld.

Starboard Value LP is a New York-based investment adviser with a focused and fundamental approach to investing in publicly traded U.S. companies. 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.

Starboard Value LP operates out of an office in New York, NY. Based on the Form ADV filed on 2020-03-30 00:00:00, the investment firm is comprised of 35 employees, only 14 of whom performs investment advisory functions.

Fact Sheet

      Name: Starboard Value LP
      CRD No: 156943
      Filing Recorded: 2020-03-30 00:00:00
      Year of Origin: 2011
      Employees: 35
      Clients: 8
      AUM: 6,166,675,306
      Management Fee: 1 to 2 Percent
      Performance Fee: 20 Percent
      Client Type: Pooled Investment Vehicles
      Assets Traded: Exchange-Traded Equity Securities, Derivatives


Investment Strategy

According to the brochure submitted to IAPD, Starboards investment strategy is as follows:

The success of the clients’ investment strategy may require, among other things: (i) that the Firm properly identify portfolio companies whose securities prices can be improved through corporate and/or strategic action; (ii) that the clients acquire sufficient securities of such portfolio companies at a sufficiently attractive price; (iii) that the clients avoid triggering anti-takeover and regulatory obstacles while aggregating their positions; (iv) that management of portfolio companies and other security holders respond positively to the Firm’s proposals; and (v) that the market price of a portfolio company’s securities increases in response to any actions taken by portfolio companies. There can be no assurance that any of the foregoing will succeed.

Successful execution of an investment strategy will depend on the cooperation of security holders and others with an interest in the portfolio company. Some security holders may have interests which diverge significantly from those of the clients and some of those parties may be indifferent to the proposed changes. Moreover, securities that the Firm believes are fundamentally undervalued or incorrectly valued may not ultimately be valued in the capital markets at prices and/or within the time frame the Firm anticipates, even if the clients’ strategy is successfully implemented. Even if the prices for a portfolio company’s securities have increased, there is no assurance that the clients will be able to realize any increase in the price of such securities.

Methods of Analysis

In addition, Starboards methods of analysis include:

The clients seek investment opportunities (i) that the Adviser believes trade at a significant discount to intrinsic value (“Value”), (ii) for which the Adviser can develop a defined plan to unlock value (“Plan”), and (iii) for which the Adviser believes there is a clear path to implementation of the Plan (“Path”). The Adviser’s investment strategy with respect to the clients focuses primarily, although not exclusively, on investing in public and private securities of U.S. public companies that the Adviser believes are deeply undervalued by the marketplace and likely to experience a significant appreciation in value as a result of operational improvements or a change in ownership, corporate direction or management or improved corporate governance. In pursuing this goal, the Adviser will utilize its information network in an effort to develop in-depth knowledge of the company and the relevant industry. The Adviser will typically conduct a thorough analysis of management, capital structure and corporate governance related issues, valuing the company using a traditional, fundamental, value-based approach and generally targeting issuers that are perceived by the Adviser to be valued at significant discount to intrinsic value based on this valuation framework.

The clients seek to be the catalyst for the creation of Value through the formation and implementation of a Plan, which is generally focused on improving the target company’s cash flow in the near to medium term. The Adviser’s preferred Path to implementation of the Plan is typically to work constructively with the issuer’s management and board of directors, but, if necessary, the Adviser is generally prepared to move more forcefully, including by securing the appointment of persons to the company’s management team or board of directors and may also, either alone or as part of a group, initiate shareholder actions seeking to maximize value. The Adviser continually evaluates each element of the Value, Plan and Path of each investment in order to test its investment thesis and seeks to reduce or exit positions in which it believes there is no longer a clear Plan or Path to achieve Value.

Top 10 Holdings from Form 13F

Reporting Period: 09/30/2020

Issuer Share Value(1000s) Put/Call
SPDR S&P 500 ETF TR 1,544,000 517,070
CORTEVA INC 11,710,329 337,375
AECOM 7,731,996 323,507
NORTONLIFELOCK INC 12,488,787 260,266
ADVANCE AUTO PARTS INC 1,596,921 245,127
GREEN DOT CORP 4,426,281 224,014
MERIT MED SYS INC 4,464,739 194,216
MAGELLAN HEALTH INC 2,369,100 179,530
COMMVAULT SYSTEMS INC 4,312,452 175,948
CERNER CORP 2,376,256 171,780

Historical 13F Filings

EdgeGiant has compiled all 13F filings since Q2 2013 for your convenience. You can view historical portfolio position forStarboard Value LPin our 13F section HERE.

To get the comprehensive list of holdings that fall under 13F regulatory guidelines, check out our write up on how to access and use 13Fs in your personal investment decisions.

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Historical Portfolio Holdings for Starboard Value LP