Elliott Associates disclosed a new activist target. The
multistrategy firm said it owns 7.4 percent of the shares of
Commvault Systems and has a combined economic exposure of 10.3
percent of the data software company. The hedge fund also
nominated four individuals to the company’s board
of directors. This is the latest among a long line of tech
companies Elliott has targeted in recent years.
In a regulatory filing, Elliott said the stock
is undervalued and represents an attractive investment
opportunity but that the company "requires fundamental change."
Elliott thinks it can significantly improve the
company’s shareholder value through operational
initiatives, capital allocation changes, and enhanced
management and board of directors, according to the filing.
"We have deep experience as software investors, and our
track record in technology is one of partnering with management
teams and boards to find mutually supported paths to value
creation," Elliott told Commvault’s
board in a detailed, lengthy letter, adding, "we have spent
considerable time in the company’s sector." It
pointed out as examples that it was recently a large
shareholder of Symantec and conducted "deep diligence" on
Veritas. "We have studied Commvault for several years and have
a strong appreciation for and understanding of the
company’s history and challenges," Elliott
Many of the most popular hedge fund stocks suffered some of
the biggest losses on Monday, when the overall stock market
tanked amid fears of a widening trade war and protectionism.
Investors are also concerned that President Trump may launch an
economic war with one of the most successful internet companies, Amazon.com, whose
founder privately owns The Washington Post, which has published
critical reports of the current administration. Pro-business
and free market advocates are also concerned the Trump
administration may block the planned merger between AT&T
and Time Warner because President Trump does not like the
reporting of Time Warner unit CNN.
Shares of Amazon.com dropped 5.2 percent, to close at
$1,371.99. They are now down nearly 12 percent in just the past
four trading sessions. Shares of streaming video giant Netflix
fell 5.10 percent, to close at $280.29. Snap, the social media
company, fell about 8.9 percent, to $14.46, and is now trading
about 15 percent below its initial public offering (IPO) price.
These and other popular internet stocks are also heavily
Kingdon Capital Management cut its stake in AIT Therapeutics by
roughly 20 percent, to 4.77 percent of the biopharmaceutical