Sachem Head Capital Files 13D on CDK Global ~ market folly

Thursday, October 30, 2014

Sachem Head Capital Files 13D on CDK Global

Scott Ferguson's activist hedge fund Sachem Head Capital has filed a 13D with the SEC regarding shares of CDK Global (CDK).  Per the filing, Sachem Head now owns 7.88% of CDK with over 12.64 million shares.  Their position includes over 4.94 notional shares underlying total return swaps.

This is a newly disclosed position and CDK was spun off from Automatic Data Processing just about a month ago.  The filing indicates that the hedge fund plans to engage management.

Prior to founding Sachem Head, Ferguson worked at Bill Ackman's Pershing Square.

Per Google Finance, CDK Global is "a global provider, both integrated technology and digital marketing/advertising solutions to the automotive retail industry. The Company’s solutions automate and integrate critical workflow processes from pre-sale targeted advertising and marketing campaigns to the sale, financing, insurance, parts supply, repair and maintenance of vehicles, with an increasing focus on utilizing big data analytics and predictive intelligence. The Company’s solutions address the entire automotive retailers’ value chain. The Company operates in three segments: Automotive Retail Solutions North America (North American Automotive Retail), Automotive Retail Solutions International (International Automotive Retail), and Digital Marketing Solutions (Digital Marketing)."

blog comments powered by Disqus