Welcome to Extreme Investor Network, where we provide expert insights and analysis on the latest investment trends and strategies. Today, we are diving into Mason Morfit’s ValueAct Capital Management and their recent investment moves in the second quarter.
According to regulatory filings, Morfit increased ValueAct’s holdings in Salesforce and Disney during the second quarter. This move comes as Morfit, who sits on Salesforce’s board of directors, shows confidence in the maker of customer relationship management software and the entertainment giant Disney. In fact, Salesforce became ValueAct’s largest single position at the end of June, with a stake worth over $1 billion, while Disney became the third biggest holding at over $600 million.
Despite both stocks suffering in the second quarter, with Salesforce dropping nearly 15% and Disney slumping almost 19%, ValueAct remains optimistic about their investments. However, the third quarter has seen mixed results so far, with Salesforce up only 1.5% and Disney down another 11%.
Interestingly, ValueAct’s 13F filing revealed that Salesforce and Disney were the only increased positions in the portfolio, with no new positions opened in the latest quarter. Morfit, a Princeton alum who previously served on the Microsoft board, also made the decision to zero out stakes in CBRE Group and Illumina during the second quarter. While these stocks slipped in Q2, they are now tracking for gains in the third quarter.
With these strategic moves, ValueAct’s concentrated portfolio now sits at just 10 stocks. Morfit also made significant cuts to other holdings, including slashing their stake in Fiserv by nearly 70%. It’s clear that Morfit, who took over ValueAct in 2020, is steering the firm towards a carefully curated investment strategy based on his expertise and past experiences in the industry.
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