Jeff Smith’s Top 10 Activist Targets and Their Returns Compared to the S&P 500

2. Healthcare Realty Trust Incorporated (NYSE:HR)

Position Initiated: November 2024

Value of the Stake: N/A

Stock Return Since November 2024 to April 2025: -11.14%

S&P 500 Return Since November 2024 to April 2025: -10.35%

Number of hedge funds holding stakes: 29

Healthcare Realty Trust Incorporated (NYSE:HR) is a real estate investment trust (REIT) that owns and operates medical outpatient buildings in market-leading hospital campuses. Its portfolio includes over 650 properties. Starboard Value LP confirmed a 5.9% stake in the company on November 26 2024, and started pushing for board seats in a bid to influence decision-making.

The activist investor struck an agreement with the healthcare-focused REIT and secured four seats on the board, including an independent chair of the board. The push for board seats came on Starboard Value LP remaining concerned with the impact of the $18 billion acquisition of Healthcare Trust of America in 2022.

Following the integration of the acquisition, property operating expenses skyrocketed to 37% from 31%, with the stock going down by about 15%. With a voice on the board, Starboard Value LP remains well-positioned to push for initiatives that unlock value from the acquisition and bolster operating margins.