Starboard Value Pursues Transformative Deals in Diverse Industries

Starboard Value is a leading activist hedge fund that has made a name for itself by pursuing transformative deals in various industries. The fund has a proven track record of identifying undervalued companies and pushing for changes that unlock their full potential.

With a focus on long-term value creation, Starboard Value has successfully invested in companies across multiple sectors, including technology, consumer goods, and healthcare. The fund's expertise lies in its ability to analyze complex business models and identify areas for improvement.

One notable example of Starboard Value's success is its investment in Darden Restaurants, the parent company of Olive Garden and LongHorn Steakhouse. By pushing for changes in the company's strategic direction, Starboard Value helped unlock significant value for shareholders.

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Starboard Value was founded as part of Ramius Capital in 2002.

The team behind Starboard Value has remained largely consistent over the years, with Peter Feld joining in 2005.

In 2008, Starboard Value merged with the Cowen Group, becoming Cowen's hedge-fund.

This partnership lasted until 2011, when Starboard Value went independent once again.

Smith, Mitchell, and Feld all stayed with Starboard Value throughout this transition.

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Starboard Value has a proven track record of investing in undervalued companies and pushing for change to increase shareholder value.

The firm's activist campaigns have led to significant improvements in companies like AOL, where they successfully advocated for the spinning off of Patch and returning $1 billion to shareholders.

In 2011, Starboard won seats on the boards of SurModics and Regis, demonstrating their ability to influence company decisions.

Starboard's efforts have also led to the appointment of new directors at companies like Symantec, where three of their nominees joined the board in 2018.

The firm has a 5.8% stake in Symantec and has nominated five directors to the company's board, highlighting their commitment to driving change.

In 2022, Starboard took a 7.4% stake in Vertiv, claiming the company was undervalued and seeking operational improvements to boost margins.

Starboard's efforts have resulted in significant returns for their investors, with Vertiv shares rising more than 10% following the news of their investment.

The firm has also taken activist positions in several other companies, including Smithfield Foods, Calgon Carbon, and Darden Restaurants, among others.

Starboard's ability to identify undervalued companies and drive change has made them a formidable force in the world of corporate activism.

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In October 2014, Smith effectively took control of Darden Restaurants, a Fortune 500 company that owns Olive Garden and Longhorn Steakhouse.

Smith's campaign involved withering public criticism of the firm's leadership and careful courtship of its major shareholders. This was a brilliant move, as it ultimately led to Smith replacing the entire board and becoming Darden's chairman.

Smith's criticisms of Darden's leadership were not just about the company's performance, but also about the quality of its food. He specifically mentioned that the pasta at Olive Garden was inadequately salted.

The outcome of Smith's takeover was impressive, with Darden's stock going up by almost 60% after Starboard took over. This is a testament to the power of activist investors like Smith.

John Oliver's three-minute comedy bit on Last Week Tonight, which was seen by nearly four million viewers, also highlighted the significance of Smith's takeover. It was a major victory for Smith and a wake-up call for directors everywhere.

Smith's triumph with Darden has left jaws hanging open across Wall Street and beyond. Only in a handful of times in the past few years has an activist managed to replace an entire board of directors, and never at a company the size of Darden.

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Starboard Value has a proven track record of generating impressive returns. Its annualized returns from 2002 to 2014 were a remarkable 15.5%.

A significant factor contributing to Starboard's success is its ability to identify profitable activist campaigns. A staggering 84% of its campaigns have been profitable.

The firm's expertise in replacing underperforming directors has also been a key factor in its success. Since 2004, Starboard has replaced over 80 directors on about 30 boards.

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Starboard Value's Acquisition Corp is a special purpose acquisition company (SPAC) that went public in 2020. It raised $500 million in an initial public offering (IPO).

Starboard Value has a history of investing in SPACs, having invested in several others prior to Acquisition Corp. This experience likely informed their decision to launch their own SPAC.

Acquisition Corp has a unique structure, with a focus on acquiring a company in the technology industry. This focus is likely driven by Starboard Value's existing expertise and network in the tech space.

The SPAC has a team of experienced professionals, including Starboard Value's founder and CEO, Jeffrey Smith. Smith has a track record of successfully leading activist campaigns and investing in technology companies.

Acquisition Corp's IPO was a significant event, with the company raising funds to pursue its acquisition strategy.

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Starboard Value has been making waves in the business world, and one of the companies on their radar is LivePerson. On April 7, 2022, Starboard delivered a letter to LivePerson's Board of Directors, highlighting opportunities to create significant value for shareholders.

The letter expressed concerns about the company's stock price, implying that it may not be reflecting the true worth of LivePerson.