Dan Friedberg‘s Sagard Capital Partners has disclosed raising its stake in BroadSoft Inc (NASDAQ:BSFT). A new filing with the Securities and Exchange Commission showed that Sagard currently holds around 1.62 million shares of the company, versus 567,000 shares reported in its latest 13F filing. The stake is activist by nature and amasses 5.6% of the company.
Sagard Capital Partners is a long-term investor with an equity portfolio worth around $289.7 million. The portfolio is concentrated and consists of only nine long positions represented by stocks mainly from the Services sector. The fund’s top three largest holdings in terms of value are represented by GP Strategies Corp (NYSE:GPX), InnerWorkings, Inc. (NASDAQ:INWK), and ICF International Inc (NASDAQ:ICFI), which amass in aggregate over 70% of the total value. The fund has been holding this companies for several years, during which all three stocks posted impressive returns. GP Strategies surged by over 180% since the fund initiated a position, while InnerWorkings and ICF International returned 30% and 75% respectively.
In this way, BroadSoft Inc (NASDAQ:BSFT) might be another company that might provide investors with long-term value. The stock gained more than 150% since its IPO back in 2010, although over the last 52 weeks it declined by around 37%, underperforming in relation to the application software industry, which returned around 7%. However, the decline came despite the company reporting solid financial results with increases on top and bottom lines. For the second quarter, the revenue went up by 19% on the year to around $52 million, while its net income went up to $0.06 per share, from a loss of $0.11 per share reported for the same period last year.
Another investor that is bullish on BroadSoft Inc (NASDAQ:BSFT) is George Soros, whose fund, Soros Fund Management, initiated a stake in the company during the second quarter and reported holding around 869,800 shares in its latest 13F filing. Lee Munder‘s Lee Munder Capital Group upped its stake by 51% on the quarter and holds 968,000 shares as of the end of June.
Insiders have also been actively trading shares of BroadSoft Inc (NASDAQ:BSFT) throughout the first half of the year. The latest transaction was made at the beginning of June by Patrick Joggerst, the vice president for worldwide sales, who disposed of 702 shares at $24.85 per unit, remaining with around 12,000 shares.
Since Sagard is committed to obtaining long-term value from its investments and it has a good track record with its other holdings. The stake in BroadSoft Inc (NASDAQ:BSFT) is currently worth around $35.3 million, which represents a significant portion of the total equity portfolio value, which shows the investor’s confidence in the stock.
Disclosure: none
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