15 Most Feared Activist Hedge Funds

7. Starboard Value L.P.

Portfolio Size: $4.84 Billion

Starboard Value is one of the most feared activist hedge funds that invest in undervalued companies like Alight, Inc. (NYSE:ALIT) and engages management teams and boards to unlock shareholder value—founded in 2011 by Jeff Smith, the activist hedge fund generated annualized returns of 15% through 2014 from its inception.

Starboard Value aims to invest in significantly undervalued companies and proactively work with their management and board members to find and implement strategies to increase value for all investors’ advantage. The hedge fund boasts extensive experience helping companies focus on operational efficiency and margin improvement, like at Alight, Inc. (NYSE:ALIT), as part of its activist campaigns.

One of the hedge fund’s notable activist targets is Salesforce Inc (NYSE:CRM), whose stake surged by over 70% after Starboard Value invested. With a portfolio value of about $4.84 billion, the hedge fund has also launched campaigns for Kohl’s and Mercury systems.  The activist hedge fund has also built a 7.8% stake in benefits services provider Alight, Inc. (NYSE:ALIT) and pushed for board seats.

Additionally, Match Group, Inc. (NASDAQ:MTCH) received a communication from Starboard outlining ways to enhance its business processes, financial outcomes, and investment strategies. This encompasses refining Tinder by developing new products, reducing expenses, increasing profit margins, and launching a proactive and organized program for returning capital. Another option being considered is to acquire the company privately.