ValueAct Capital Builds Seagate Stake, Sells More MSCI ~ market folly

Friday, September 9, 2016

ValueAct Capital Builds Seagate Stake, Sells More MSCI

Per a Seagate Technology (STX) press release, Jeff Ubben's ValueAct Capital has become one of the company's largest shareholders.  They now own 9.5 million STX shares, up from the 3 million shares they owned at the end of the second quarter.

ValueAct participated in a secondary transaction and has also been invited to join as an observer on Seagate's board.

Partner Mason Morfit said that, "Seagate has a strong storage technology portfolio and is well positioned to benefit from attractive long-term secular trends.  We are excited about the opportunity to work with the Seagate team, at both the Board and management level, to help increase long-term value for all shareholders."

The brand new issue of our Hedge Fund Wisdom newsletter recently analyzed Seagate's main competitor, Western Digital.

Per Google Finance, Seagate is "a provider of electronic data storage technology and solutions. The Company's principal products are hard disk drives (HDDs). In addition to HDDs, it produces a range of electronic data storage products, including solid state hybrid drives, solid state drives, peripheral component interconnect express (PCIe) cards and serial advanced technology architecture (SATA) controllers. Its storage technology portfolio also includes storage subsystems and high performance computing solutions. Its products are designed for applications in enterprise servers and storage systems, client compute applications and client non-compute applications. It designs, fabricates and assembles various components found in its disk drives, including read/write heads and recording media. Its design and manufacturing operations are based on technology platforms that are used to produce various disk drive products that serve multiple data storage applications and markets."

ValueAct Sells More MSCI

Also, per a Form 4 filed with the SEC,  ValueAct has sold some more shares of MSCI (MSCI).  They sold 450,000 shares in total on September 6th-8th at prices of $88.4, $88.5, and $87.6.

After these transactions, Jeff Ubben's firm now only owns 850,900 shares of MSCI.

Per Google Finance, MSCI "offers content, applications and services to support the needs of institutional investors throughout their investment processes. The Company's operating segment includes Index, Analytics and All Other segment. All Other segment comprises ESG and Real Estate segments. The Index operating segment is a provider of investment decision support tools, including equity indexes and equity index benchmarks. The Analytics operating segment consists of products and services used for portfolio construction, risk management and reporting. The ESG operating segment offers products institutional investors use for assessing risks and opportunities arising from environmental, social and governance issues. ESG tools are used to evaluate both individual securities and investment portfolios. The Real Estate operating segment is a provider of real estate performance analysis for funds, investors, managers, lenders and occupiers."

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