Investment idea generation.

Blog

Our thoughts.

Some People Just Don't Like Jeff Ubben

Jeff Ubben's ValueAct Capital has some support in getting a board seat at Rolls-Royce (RYCEY), but many investors are losing faith or pushing back against Ubben. 

The pushback is coming from top investors. 

Major investor no. 1 says, it does not believe ValueAct will improve the growth prospects of the company, “We think that ValueAct are more serious than some activist investors but their interest is mainly in extracting what their name would imply: value,” the shareholder said. “Rolls is one of the few remaining serious British industrial companies, and one would hope it had a future beyond producing cash flow for the next few years. In the long run we want the business to be reinvested in.”

Major investor no. 2 says its 10 percent stake is “not big enough in my mind to just demand a board seat when it’s a large public company”.

Looking for some serious insight into activist campaigns and targets, check out the super premium Activist Strategy