Starboard Value LP recently filed their 13F report for the first quarter of 2022, which ended on 2022-03-31.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
Starboard Value LP is a private hedge fund sponsor based out of New York City. The company was established in 2002 by Jeff C. Smith and Mark Mitchell, both of whom are still with the company today acting as the CEO/CIO and Head of Risk Management and Trading, respectively. The company was originally an investment strategy and would spin off into its own independent company in 2011. Starboard Value has grown to 18 employees of which 10 are investment professionals. Starboard Value is mainly owned by Starboard Principal Co. LP, which holds the controlling majority holdings in the company with over half of the total holdings, with the remaining ownership split amongst Ramius V&O Holdings LLC and various key executives. The firm utilizes a fundamental methodology with a focused approach to make its investments, focusing on locating undervalued companies. Starboard Value invests mainly in small cap companies in the public equity markets of the U.S. The company invests most heavily in the consumer discretionary sector, which alone makes up over a third of its total asset allocations, and also invests in the finance, information technology, materials, and industrials, in order of decreasing allocation. Starboard Value currently holds approximately $4.7 billion in total assets under management spread across 26 accounts, all of which are discretionary accounts. Both of the firm’s total number of accounts and total assets under management have been increasing in recent years with its total number of accounts increasing from 11 when it became independent to over twice that amount today and its total managed assets growing significantly from $250 million back in 2011 to approaching 18 times that amount today. Starboard Value mainly caters to pooled investment vehicles, which alone makes up approximately two thirds of its client base, and also provides services to state or municipal government entities and others, in order of decreasing clientele.
As of the latest 13F report, the guru’s equity portfolio contained 171 stocks valued at a total of $7,543,000,000. The top holdings were GDDY(9.15%), HUN(8.21%), and ACM(7.23%).
According to GuruFocus data, these were Starboard Value LP’s top five trades of the quarter.
Huntsman Corp
Starboard Value LP reduced their investment in NYSE:HUN by 1,941,470 shares. The trade had a 0.95% impact on the equity portfolio. During the quarter, the stock traded for an average price of $36.77.
On 05/15/2022, Huntsman Corp traded for a price of $34.88 per share and a market cap of $7,317,757,000. The stock has returned 18.57% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Huntsman Corp has a price-earnings ratio of 6.45, a price-book ratio of 1.69, a price-earnings-to-growth (PEG) ratio of 1.03, a EV-to-Ebitda ratio of 4.61 and a price-sales ratio of 0.85.
The price-to-GF Value ratio is 0.97, earning the stock a GF Value rank of 7.
Humana Inc
The guru established a new position worth 968,200 shares in NYSE:HUM, giving the stock a 5.59% weight in the equity portfolio. Shares traded for an average price of $417.95 during the quarter.
On 05/15/2022, Humana Inc traded for a price of $438.89 per share and a market cap of $55,516,689,000. The stock has returned -3.11% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Humana Inc has a price-earnings ratio of 18.62, a price-book ratio of 3.62, a price-earnings-to-growth (PEG) ratio of 1.12, a EV-to-Ebitda ratio of 13.80 and a price-sales ratio of 0.65.
The price-to-GF Value ratio is 0.90, earning the stock a GF Value rank of 9.
Magellan Health Inc
The guru sold out of their 2,369,100-share investment in NAS:MGLN. Previously, the stock had a 3.12% weight in the equity portfolio. Shares traded for an average price of $94.99 during the quarter.
On 05/15/2022, Magellan Health Inc traded for a price of $94.99 per share and a market cap of $2,501,284,000. The stock has returned 1.44% over the past year.
There is insufficient data to calculate the stock’s financial strength and profitability ratings.
In terms of valuation, Magellan Health Inc has a price-earnings ratio of 8.28, a price-book ratio of 1.29, a EV-to-Ebitda ratio of 16.78 and a price-sales ratio of 0.52.
Mercury Systems Inc
The guru established a new position worth 3,583,749 shares in NAS:MRCY, giving the stock a 3.06% weight in the equity portfolio. Shares traded for an average price of $59.28 during the quarter.
On 05/15/2022, Mercury Systems Inc traded for a price of $59.23 per share and a market cap of $3,415,986,000. The stock has returned -8.43% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Mercury Systems Inc has a price-earnings ratio of 282.05, a price-book ratio of 2.19, a price-earnings-to-growth (PEG) ratio of 16.49, a EV-to-Ebitda ratio of 34.44 and a price-sales ratio of 3.47.
The price-to-GF Value ratio is 0.67, earning the stock a GF Value rank of 8.
Kohl's Corp
The guru established a new position worth 3,331,145 shares in NYSE:KSS, giving the stock a 2.67% weight in the equity portfolio. Shares traded for an average price of $56.37 during the quarter.
On 05/15/2022, Kohl's Corp traded for a price of $48.44 per share and a market cap of $6,228,946,000. The stock has returned -12.49% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Kohl's Corp has a price-earnings ratio of 7.55, a price-book ratio of 1.36, a EV-to-Ebitda ratio of 4.93 and a price-sales ratio of 0.36.
The price-to-GF Value ratio is 0.88, earning the stock a GF Value rank of 6.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
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