ValueAct Capital Management, LP is a large hedge fund with headquarters in San Francisco, California. ValueAct has almost $13.7 billion in client assets under management (AUM), spread across 12 different funds, two of which are active hedge funds. The firm employs a team of just 15 financial professionals to manage these funds and their investments. However, the firm also employs other individuals to help manage day-to-day operations outside of investment roles.
Hedge funds like ValueAct are extremely exclusive, as only accredited investors can get in. However, a financial advisor can also help you reach your investment goals, and finding one is as easy as using SmartAsset's free matching tool.
ValueAct Capital Management Background
Though it's only been registered with the U.S. Securities and Exchange Commission (SEC) since 2010, ValueAct Capital Management was founded in June 2000 and has seven investment partners. The firm is more than 25% owned by ValueAct Holdings II, L.P. However, none of the members of ValueAct Holdings own more than 25% of ValueAct Capital Management. Christopher Allen serves as the firm's chief financial officer (CFO).
ValueAct Capital Management Investment Philosophy
ValueAct Capital manages its funds according to its own investment objectives. That is to say that its strategies are not tailored to the preferences of any individual investors in a given fund. Currently, the firm manages one family of funds that all employ a similar strategy of long-term, concentrated, active value investing.
Strategies can also be more fund-specific too, though. In the Legacy Fund, for instance, the firm usually chooses to invest in companies with a market capitalization above $3 billion. Co-investment vehicles follow a long-term strategy of equity co-investments.
On the whole, ValueAct looks to acquire large stakes in a select number of companies that it believes to be undervalued. This is in contrast to other hedge funds' strategies that involve smaller ownership stakes in a greater number of companies. More specifically, the firm's investment team likes to look at companies undergoing changes, as it believes these investments are more likely to be mispriced.
Largest Hedge Funds Managed by ValueAct Capital Management
ValueAct Capital Master Fund LP
- AUM: $13,174,082,639
- Minimum: $10,000,000
- Beneficial Owners: 321
ValueAct Capital Master Fund B LP
- AUM: $273,404,018
- Minimum: $10,000,000
- Beneficial Owners: 3
Fees at ValueAct Capital Management
The funds managed by ValueAct Capital Management incur management fees that range from 0.25% to 2% annually. For more specific management fee information, you'll want to reach out directly to the firm and inquire about the specific fund or funds that you're curious about. Certain co-investment vehicles do not incur typical management fees.
ValueAct also takes a performance fee from most of its funds. This is usually equal to 20% of the fund's profits annually. Unlike management fees, which are typically paid more on a quarterly basis, performance fees are charged at the end or beginning of every fiscal year.
What to Watch Out For
ValueAct Capital Management has a single civil judicial disclosure listed on its Form ADV. This relates to an advisory affiliate of the firm who violated a notice and waiting period requirement. This disclosure resulted in an $11 million fine and a cease and desist order.
It's important to know that only accredited investors can invest in a hedge fund. In order to become an accredited investor, you need to have at least $200,000 of earned income ($300,000 for couples) over the course of the past two years, plus a reasonable belief that this will continue to be true in the current year. You can also become an accredited investor if you have at least a $1 million net worth (minus the value of your primary residence), either on your own or with a spouse.
Becoming a Client of ValueAct Capital Management
Remember that you'll need to be an accredited or institutional investor to put your money into a hedge fund managed by ValueAct. If you meet these requirements, you can get in touch with the firm directly by giving them a call, stopping by the firm's website or sending an email.
All information is accurate as of the writing of this article.
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