ValueAct Invests $2 Billion In Microsoft

Apr 24 2013 | 11:17am ET

Activist hedge fund ValueAct Capital Management has taken a $2 billion stake in software giant Microsoft Corp.

ValueAct founder Jeffrey Ubben disclosed the huge investment at a Monday investor conference. Ubben said that Microsoft was undervalued.

"It is a dominant software company," Ubben said. "In the long term, it will win out." Ubben also praised Microsoft's work on cloud computing, noting, "Microsoft could be the largest cloud company in the world."

Microsoft said it welcomes "the perspectives of shareholders," and that it is "committed to enhancing value for all shareholders, and will continue to take actions that we believe will enable us to achieve this objective."

ValueAct did not specify how many shares it owned, but a $2 billion stake would amount to less than 1% of Microsoft.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Moore Capital PM Fired After Raucous Hamptons Party

Jul 7 2016 | 10:47pm ET

A portfolio manager for Louis Bacon’s $15 billion hedge fund Moore Capital Management...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...