Sachem Head invests where other activists tread in FedEx, Hasbro

By Svea Herbst-Bayliss

BOSTON (Reuters) – Funding agency Sachem Head Capital Administration, which settled its proxy battle with US Meals Holding Corp in Might, added three new positions through the second quarter in corporations the place different activists had already flexed their muscle.

The agency, run by Scott Ferguson, reported proudly owning 493,099 shares of freight transport firm FedEx, 1.5 million shares of cloud-based software program firm New Relic, and 620,000 shares of toymaker Hasbro on June 30, in response to a regulatory submitting.

Activist agency Jana Companions received two board seats at New Relic in June whereas FedEx added two board administrators in an settlement with hedge fund DE Shaw. Hasbro in June beat again a board problem from hedge fund Alta Fox which has pushed the corporate to spin off a profitable division.

Funding managers are required to inform regulators how a lot inventory they owned in U.S. corporations on the finish of every quarter in so-called 13F filings. Whereas the filings are backward trying, different traders watch them intently for hints on tendencies, together with options of which corporations activist traders is perhaps concentrating on.

Sachem Head mounted a high-profile proxy battle this yr towards US Meals however agreed to drop the battle in alternate for 3 seats on the meals distributor’s board. US Meals had struggled to spice up revenue margins in keeping with opponents.

The agency doesn’t push administration for adjustments in any respect its portfolio corporations.

Sachem Head additionally boosted its stake in industrial firm Arconic, including 3.6 million shares to personal 4 million shares on the finish of the quarter.

It exited investments in Carvana and Submit Holdings.

(Reporting by Svea Herbst-Bayliss; Enhancing by David Gregorio)