Starboard Value LP recently filed their 13F report for the second quarter of 2022, which ended on 2022-06-30.
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 183 stocks valued at a total of $5.50Bil. The top holdings were GDDY(10.59%), ACM(8.33%), and HUM(8.17%).
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 8,208,122 shares. The trade had a 4.08% impact on the equity portfolio. During the quarter, the stock traded for an average price of $33.83.
On 08/14/2022, Huntsman Corp traded for a price of $30.03 per share and a market cap of $6.05Bil. The stock has returned 18.76% over the past year.
GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Huntsman Corp has a price-earnings ratio of 5.17, a price-book ratio of 1.46, a price-earnings-to-growth (PEG) ratio of 0.82, a EV-to-Ebitda ratio of 3.82 and a price-sales ratio of 0.69.
The price-to-GF Value ratio is 0.78, earning the stock a GF Value rank of 10.
Corteva Inc
Starboard Value LP reduced their investment in NYSE:CTVA by 4,978,535 shares. The trade had a 3.79% impact on the equity portfolio. During the quarter, the stock traded for an average price of $58.05.
On 08/14/2022, Corteva Inc traded for a price of $61.76 per share and a market cap of $44.38Bil. The stock has returned 35.32% over the past year.
GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 5 out of 10.
In terms of valuation, Corteva Inc has a price-earnings ratio of 26.06, a price-book ratio of 1.72, a EV-to-Ebitda ratio of 12.30 and a price-sales ratio of 2.70.
The price-to-GF Value ratio is 1.41, earning the stock a GF Value rank of 1.
Cerner Corp
The guru sold out of their 2,257,406-share investment in NAS:CERN. Previously, the stock had a 2.8% weight in the equity portfolio. Shares traded for an average price of $93.94 during the quarter.
On 08/14/2022, Cerner Corp traded for a price of $94.92 per share and a market cap of $27.92Bil. The stock has returned 20.58% over the past year.
GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Cerner Corp has a price-earnings ratio of 43.38, a price-book ratio of 6.88, a price-earnings-to-growth (PEG) ratio of 2.65, a EV-to-Ebitda ratio of 17.47 and a price-sales ratio of 4.46.
The price-to-GF Value ratio is 1.16, earning the stock a GF Value rank of 3.
iShares Russell 2000 ETF
Starboard Value LP reduced their investment in ARCA:IWM by 1,000,000 shares. The trade had a 2.72% impact on the equity portfolio. During the quarter, the stock traded for an average price of $184.3.
On 08/14/2022, iShares Russell 2000 ETF traded for a price of $200.36 per share and a market cap of $58.11Bil. The stock has returned -9.26% over the past year.
There is insufficient data to calculate the stock’s financial strength and profitability ratings.
In terms of valuation, iShares Russell 2000 ETF has a price-book ratio of 1.76.
Kohl's Corp
Starboard Value LP reduced their investment in NYSE:KSS by 2,796,116 shares. The trade had a 2.24% impact on the equity portfolio. During the quarter, the stock traded for an average price of $49.21.
On 08/14/2022, Kohl's Corp traded for a price of $33.18 per share and a market cap of $4.26Bil. The stock has returned -37.77% over the past year.
GuruFocus gives the company a financial strength rating of 5 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 5.15, a price-book ratio of 0.95, a EV-to-Ebitda ratio of 4.67 and a price-sales ratio of 0.24.
The price-to-GF Value ratio is 0.60, earning the stock a GF Value rank of 4.
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.
Want to provide feedback on this article? Have questions or concerns? Get in touch with us here, or email us at [email protected]!
This article is general in nature and does not represent the opinions of GuruFocus or any of its affiliates. This article is not intended to be financial advice, nor does it constitute investment advice or recommendations. It was written without regard to your individual situation or financial goals. We aim to bring you fundamental, data-driven analysis, The information on this site is in no way guaranteed for completeness, accuracy or in any other way.
