ValueAct in action at Microsoft Corporation (NASDAQ:MSFT) with $2 billion stake – MSI

Northern, WI 04/23/2013 (usastockreport) – The largest software maker in the world, Microsoft Corporation (NASDAQ:MSFT) (Closed: $30.83, Up by 3.58%), climbed to its highest price since September post the CNBC report that ValueAct Capital Management LLC, the activist fund has accumulated a stake of $2 billion. The shares had climbed by 3.5 percent to touch $30.82 and had touched $31.81 earlier which had been the highest intraday price since 21 September. Right through April 19, the shares had advanced by 11 percent. With this, Microsoft will be ValueActs’ biggest holding as this tops the $1.6 billion stake that it has in Motorola Solutions Inc (NYSE:MSI) (Closed: $61.78, Up by 0.10%) as of 31 December.

An example in investment
As a fund, ValueAct manages close to $8 billion in various assets. It also has a unique investment strategy. It generally invests in companies that, in its judgment are “fundamentally undervalued”. In doing so it gets the chance to advocate for changes in the company. The company’s website says that these changes are meant to boost shareholder returns. Steve Balmer, the Microsoft Chief Executive Officer had been facing a massive challenge trying to offset the steady and alarming decline in sales of personal computers as a larger number of people gravitate towards smartphones and tablets. He has been trying to make changes within the company which would help it boost software revenue and the ValueActs’ entry into the scene may bring about a much-needed change.

The Redmond, Washington-based Microsoft representative and the Boston and San Francisco ValueAct representatives could not be contacted immediately for comment.

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