ValueAct Capital (Trades, Portfolio), a renowned investment firm, recently submitted its 13F report for the second quarter of 2023, which concluded on June 30, 2023. The firm is known for its strategic value-based investment approach, focusing on acquiring significant ownership stakes in companies it believes to be fundamentally undervalued. The firm's portfolio for the reported quarter comprised of 9 stocks, with a total value of $6.43 billion.
Top Holdings
The firm's top holdings for the quarter were FI (22.85%), KKR (17.88%), and STX (12.93%). The distribution of these holdings provides insights into the firm's investment focus and strategy for the quarter.
Key Trades of the Quarter
ValueAct Capital (Trades, Portfolio)'s top three trades for the quarter involved Spotify Technology SA (NYSE:SPOT), CBRE Group Inc (NYSE:CBRE), and Insight Enterprises Inc (NAS:NSIT).
Spotify Technology SA (NYSE:SPOT)
The firm reduced its investment in Spotify Technology SA by 450,000 shares, impacting the equity portfolio by 0.98%. The stock traded at an average price of $144.73 during the quarter. As of August 14, 2023, SPOT's price was $139.38, with a market cap of $27.13 billion. The stock has returned 12.74% over the past year. GuruFocus rates the company's financial strength and profitability at 6/10 and 4/10, respectively. SPOT's valuation ratios include a price-book ratio of 12.11, a EV-to-Ebitda ratio of -36.91, and a price-sales ratio of 2.07.
CBRE Group Inc (NYSE:CBRE)
ValueAct Capital (Trades, Portfolio) purchased 2,784 shares of CBRE Group Inc during the quarter, bringing its total holding to 9,237,748 shares. This trade had a 0% impact on the equity portfolio. The stock traded at an average price of $74.84 during the quarter. As of August 14, 2023, CBRE's price was $84.65, with a market cap of $26.23 billion. The stock has returned -3.08% over the past year. GuruFocus rates the company's financial strength and profitability at 6/10 and 8/10, respectively. CBRE's valuation ratios include a price-earnings ratio of 32.06, a price-book ratio of 3.25, a PEG ratio of 12.82, a EV-to-Ebitda ratio of 21.84, and a price-sales ratio of 0.87.
Insight Enterprises Inc (NAS:NSIT)
The firm purchased 514 shares of Insight Enterprises Inc during the quarter, bringing its total holding to 4,511,630 shares. This trade had a 0% impact on the equity portfolio. The stock traded at an average price of $134.4 during the quarter. As of August 14, 2023, NSIT's price was $148.48, with a market cap of $5.28 billion. The stock has returned 58.52% over the past year. GuruFocus rates the company's financial strength and profitability at 6/10 and 9/10, respectively. NSIT's valuation ratios include a price-earnings ratio of 20.57, a price-book ratio of 3.08, a PEG ratio of 1.36, a EV-to-Ebitda ratio of 12.46, and a price-sales ratio of 0.55.
In conclusion, ValueAct Capital (Trades, Portfolio)'s Q2 2023 13F filing reveals a strategic approach to value investing, with a focus on undervalued companies that offer potential for significant returns. The firm's key trades and top holdings provide valuable insights into its investment strategy and market outlook.
