Which Positions Did Starboard Value Increase in 2Q16?
Jeffrey Smith is an activist hedge fund manager and CEO of Starboard Value, a hedge fund management firm. Its portfolio is heavily tilted towards the consumer discretionary (XLY) sector. The firm had a 40.1% portfolio allocation in the consumer discretionary sector. Other hedge fund management firms such as Greenlight Capital, Third Point, and Soros Fund Management also have sizeable investments in the consumer discretionary sector in 2Q16.
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The firm’s holdings
The firm’s top holding is Yahoo! (YHOO), which represents 19.9% of the firm’s portfolio allocation. It holds 12.2 million shares of Yahoo! worth $529.1 million. The firm is the tenth-largest investor in Yahoo. The largest investor in Yahoo! (YHOO) is TCI Fund Management with 71.2 million shares. The firm’s CEO, Jeffrey Smith, believes Verizon’s acquisition of Yahoo’s operating business will be helpful for Yahoo! to build further distribution channels in the market (SPY) (VOO) (IWM).
The firm increased its position in Advance Auto Parts (AAP). It bought 1.0 million shares in 2Q15. In total it holds 2.7 million shares of this stock worth $435.4 million. This stock makes up 16.4% of the firm’s portfolio. Starboard Value is the fifth-largest investor in Advance Auto Parts (AAP). The largest investor in Advance Auto Parts is Wellington Management Group with 7.5 million shares.
Starboard Value reduced its holdings in Macy’s (M) in the second quarter. Macy’s declining sales are a major concern for investors. The firm sold 1.5 million shares of Macy’s. After selling its holding in this stock, the firm was holding 2.3 million shares worth $95.1 million. It was the largest selling position of the firm in the second quarter.
In the next part of this series, we will analyze Appaloosa Management’s holdings as of June 30, 2016.