What is Sachem Head Capital Management and Its Investment Approach

Sachem Head Capital Management is a hedge fund that focuses on long-short equity strategies.

The firm was founded in 2013 by Scott Black, a well-known value investor.

Sachem Head's investment approach involves identifying undervalued companies with strong fundamentals and catalysts for change.

The firm's strategy is based on in-depth research and analysis of a company's financials, management team, and industry trends.

Sachem Head's investment team uses a combination of quantitative and qualitative methods to identify potential investment opportunities.

The firm's portfolio is typically concentrated in a small number of high-conviction ideas.

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Sachem Head Capital Management has taken positions in various companies, including Zoetis Inc., an animal health-care group, and CDK Global, an IT provider.

As of 2016, CDK's stock had risen by more than 80% after Sachem Head became its biggest investor a month after it went public in early October 2014.

Sachem Head's largest position in February 2017 was in Autodesk, which manufactures 3D computer-aided design (CAD) software, and returned 7.7% in 2016.

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The company's investments have been successful, with some notable returns.

Here are some of Sachem Head's top holdings:

Sachem Head has also asked companies to consider breaking up their businesses to boost individual value, as seen in its request to Whitbread, owner of the Premier Inn chain in the United Kingdom, in January 2018.

Sachem Head Capital Management offers compensation arrangements that include a percentage of assets under your management, as well as performance-based fees.

The average salary for a Director, Operations at Sachem Head Capital Management Lp is $186,598 per year.

You can check more jobs information at Sachem Head Capital Management Lp, including average salaries and hourly rates, to get a better understanding of their compensation and job opportunities.

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Compensation Arrangements can take many forms, but two common ones are a percentage of assets under your management and performance-based fees.

A percentage of assets under your management is a straightforward way to pay someone for their work.

Performance-based fees, on the other hand, tie compensation directly to the success of a project or endeavor.

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As of February 2025, the average annual salary for a Managing Director at Sachem Head Capital Management Lp is $823,203.

This salary can be broken down to approximately $396 per hour, but it's essential to note that salaries can vary significantly based on factors such as geographic location and individual qualifications.

The average annual salary for a Managing Director at Sachem Head Capital Management Lp typically ranges from $628,211 to $1,039,636, reflecting the diverse roles within the company.

These figures are influenced by years of experience, specific skill sets, educational background, and relevant certifications, which can impact compensation for this role.

To give you a better idea, here are some key salary ranges for Managing Directors at Sachem Head Capital Management Lp:

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To succeed at Sachem Head Capital Management, you'll need to possess a range of skills that can be observed and measured. Leadership is crucial, as it involves knowing and employing effective strategies to motivate and guide others to achieve optimal results.

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Having a solid planning skillset is also essential, as it involves making and carrying out plans, establishing goals, policies, and procedures for the business.

Initiative is another key skill, as it requires taking decisive action and initiating plans independently to address problems and achieve goals.

Analytical skills are necessary for understanding and explaining complex information, which involves considering something carefully or using statistical methods.

Familiarity with futures is also important, as it involves understanding derivative financial contracts that obligate the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and set price.

Here are the specific skills you'll need to succeed at Sachem Head Capital Management:

Sachem Head Capital Management has a history of solid value investing, dating back to its founding in 2013 by Scott Ferguson.

Ferguson's experience at Pershing Square, where he worked for nine years, likely informed his approach to value investing.

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