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ValueAct Capital Management LP

Last Updated: 12/3/2020

ValueAct Capital Management LP is a Limited Partnership that started in 2000 and is primarily owned and controlled by Jeffrey W. Ubben.

In over 20 years of business, ValueAct has made over 100 core investments and have served on 46 public company boards. They take a long term approach to their investments, regularly holding positions for 3 to 5 years, and sometimes for over 10 years or more.

ValueAct Capital Management LP operates out of an office in San Francisco, CA. Based on the Form ADV filed on 2020-03-27 00:00:00, the investment firm is comprised of 49 employees, only 21 of whom performs investment advisory functions.

Fact Sheet

      Name: ValueAct Capital Management LP
      CRD No: 154249
      Filing Recorded: 2020-03-27 00:00:00
      Year of Origin: 2000
      Employees: 49
      Clients: 19
      AUM: 12,343,407,672
      Management Fee: .5 to 2 Percent
      Performance Fee: 20 Percent
      Client Type: Pooled Investment Vehicles
      Assets Traded: Unspecified


Investment Strategy

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

The Legacy Fund concentrates on acquiring significant ownership stakes in a limited number of companies that it believes are fundamentally undervalued. The ValueAct Capital investment team seeks to identify companies that are out of favor or may be undergoing significant transition. The investment team believes that such companies may be temporarily mispriced for a variety of reasons, including perceived unfavorable industry conditions, poor business performance, changes in management or ownership, reorganizations, or other external factors. These conditions can often result in fundamentally “good” businesses that are available at depressed valuations. In most of ValueAct Capital’s core investments, the goal is to work productively with management and/or the company’s board to implement a strategy or strategies that maximize returns for all shareholders.

The Spring Fund’s investment objective is to seek to achieve superior returns by making long-term investments in companies that seek to responsibly and creatively address certain environmental and societal problems.

The Co-Invest Fund’s investment objective is to seek superior returns by co-investing with the Legacy Fund in a limited number of public companies.

The Co-Investment Vehicles’ investment objectives are to seek superior returns by co-investing with the other private funds in certain public companies.

Methods of Analysis

In addition, ValueActs methods of analysis include:

Investing in securities involves risk of loss that investors should be prepared to bear. ValueAct Capital invests primarily in equity and equity-linked securities of an issuer. ValueAct Capital utilizes financial instruments both for investment purposes and to seek to hedge against fluctuations in the value of the private funds’ portfolios as a result of changes in currency exchange rates, market interest rates, and equity prices. Such instruments may include forward contracts, stock index futures, options, swaps, caps, and floors. Although not a significant part of the investment strategy, ValueAct Capital may also engage in short sales and invest in corporate debt securities. Corporate debt securities include corporate bonds, debentures, notes, convertible securities, and other similar corporate debt instruments. Finally, the Legacy Fund and Spring Fund generally may not invest more than 25% of their assets, as of the date of the investment, in the securities of any one issuer.

ValueAct Capital hasthe ability to invest, as described in the applicable CM, a specified percentage (depending on the relevant tranche of interests) of the net asset value of each investor’s capital account balance, in “Private Portfolio Investments,” which are defined to include: (i) securities of companies or other entities the shares or interests of which are held by fewer than 300 stockholders; (ii) any other company or entity that has, in the determination of the general partner, predominantly similar characteristics of such company or entity; (iii) any company or entity which, following the investment, will not have publicly traded common equity; and (iv) any other investments deemed by the general partner, in its sole discretion, to present difficult valuation issues.

Each Private Portfolio Investment will be held in a separate sub-account on behalf of the private fund and capital allocated to each Private Portfolio Investment generally may not be withdrawn by an investor until the investment is liquidated or deemed liquidated by ValueAct Capital. Generally, only those Legacy Fund and Spring Fund investors who are admitted to a private fund on or prior to the date a Private Portfolio Investment is made participate in the profits and losses associated with the Private Portfolio Investment. Certain investors in the Legacy Fund have been given the ability, through side letters, to elect not to participate in any Private Portfolio Investments made after the date of their admission.

Finally, in its discretion, ValueAct Capital and/or the general partner of a private fund may permit or require certain investors to be excluded from making or holding a specific investment. As such, only the non-excluded investors will participate in such investment.

The Co-Invest Fund generally may not invest in a non-core holding (determined as of the date the applicable Co-Invest Fund issues a capital call notice for a specific investment), or Private Portfolio Investments, or securities of an issuer not held by the Legacy Fund. The Co-Invest Fund may not invest more than 25% of the capital commitments of each investor in any single issuer, as of the business day immediately prior to the time a binding commitment is made in respect of an investment, unless otherwise approved by the Advisory Board. With the approval of the Advisory Board, the Co-Invest Fund can, but currently does not intend to, invest in Private Portfolio Investments and investors in the Co-Invest Fund have the option not to invest in a given Private Portfolio Investment.

The Co-Investment Vehicles are single security investment vehicles and therefore can only invest in a core holding of the Legacy and/or Spring Fund. No other types of investments can be made by these vehicles at this time.

Top 10 Holdings from Form 13F

Reporting Period: 09/30/2020

Issuer Share Value(1000s) Put/Call
SEAGATE TECHNOLOGY PLC 31,554,360 1,554,683
KKR & CO INC 45,000,000 1,545,300
CITIGROUP INC 27,025,500 1,165,069
LKQ CORP 21,547,746 597,519
MORGAN STANLEY 11,500,000 556,025
TRINITY INDS INC 27,005,855 526,614
CBRE GROUP INC 10,229,820 480,495
BAUSCH HEALTH COS INC 17,931,594 278,657
SLM CORP 32,294,254 261,261
SMITH A O CORP 2,092,510 110,485

Historical 13F Filings

EdgeGiant has compiled all 13F filings since Q2 2013 for your convenience. You can view historical portfolio position forValueAct Capital Management 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 ValueAct Capital Management LP