Starboard Value LP recently filed their 13F report for the third quarter of 2022, which ended on 2022-09-30.
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 177 stocks valued at a total of $4.55Bil. The top holdings were GDDY(12.87%), ACM(10.48%), and HUM(10.17%).
According to GuruFocus data, these were Starboard Value LP’s top five trades of the quarter.
GoDaddy Inc
During the quarter, Starboard Value LP bought 3,623,063 shares of NYSE:GDDY for a total holding of 11,883,000. The trade had a 5.1% impact on the equity portfolio. During the quarter, the stock traded for an average price of $67.53.
On 11/15/2022, GoDaddy Inc traded for a price of $73.89 per share and a market cap of $11.48Bil. The stock has returned 4.14% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 5 out of 10.
In terms of valuation, GoDaddy Inc has a price-earnings ratio of 34.85, a EV-to-Ebitda ratio of 21.50 and a price-sales ratio of 2.95.
The price-to-GF Value ratio is 0.74, earning the stock a GF Value rank of 10.
Acacia Research Corp
The guru established a new position worth 5,000,000 shares in NAS:ACTG, giving the stock a 0.35% weight in the equity portfolio. Shares traded for an average price of $3.9 during the quarter.
On 11/15/2022, Acacia Research Corp traded for a price of $3.9 per share and a market cap of $150.31Mil. The stock has returned -29.22% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 3 out of 10.
In terms of valuation, Acacia Research Corp has a price-book ratio of 0.58, a EV-to-Ebitda ratio of -1.34 and a price-sales ratio of 1.78.
The price-to-GF Value ratio is 0.19, earning the stock a GF Value rank of 2.
Vertiv Holdings Co
The guru established a new position worth 27,839,000 shares in NYSE:VERT.U, giving the stock a 9.15% weight in the equity portfolio. Shares traded for an average price of $19.9 during the quarter.
On 11/15/2022, Vertiv Holdings Co traded for a price of $19.9 per share and a market cap of $0.00Mil. The stock has returned 59.42% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 3 out of 10.
In terms of valuation, Vertiv Holdings Co has a price-book ratio of 4.57, a EV-to-Ebitda ratio of 16.57 and a price-sales ratio of 1.06.
Wix.com Ltd
The guru established a new position worth 2,567,966 shares in NAS:WIX, giving the stock a 4.42% weight in the equity portfolio. Shares traded for an average price of $68.94 during the quarter.
On 11/15/2022, Wix.com Ltd traded for a price of $86.92 per share and a market cap of $4.99Bil. The stock has returned -56.53% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 3 out of 10.
In terms of valuation, Wix.com Ltd has a EV-to-Ebitda ratio of -81.72 and a price-sales ratio of 3.79.
The price-to-GF Value ratio is 0.37, earning the stock a GF Value rank of 4.
GCP Applied Technologies Inc
The guru sold out of their 6,540,000-share investment in NYSE:GCP. Previously, the stock had a 3.72% weight in the equity portfolio. Shares traded for an average price of $31.61 during the quarter.
On 11/15/2022, GCP Applied Technologies Inc traded for a price of $32.01 per share and a market cap of $2.37Bil. The stock has returned 41.83% 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, GCP Applied Technologies Inc has a price-earnings ratio of 228.64, a price-book ratio of 3.67, a price-earnings-to-growth (PEG) ratio of 55.57, a EV-to-Ebitda ratio of 25.63 and a price-sales ratio of 2.36.
The price-to-GF Value ratio is 1.24, earning the stock a GF Value rank of 3.
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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