ValueAct Adds to Citigroup Stake, Sells Down 21st Century Fox

(Bloomberg) -- ValueAct Capital Management, the activist fund run by Jeff Ubben, increased its stake in Citigroup Inc. during the second quarter while selling down its position in takeover target 21st Century Fox Inc.

The San Francisco-based hedge fund owned about $1.7 billion worth of Citigroup’s shares at the end of the second quarter, according to a regulatory filing Tuesday. ValueAct has been building its stake since late last year and believes the bank is undervalued, according to a letter to investors in May. Citigroup said at the time that it had held constructive conversations with ValueAct and welcomed its investment.

The fund also increased its stake in Morgan Stanley.

ValueAct reduced its stake in 21st Century Fox, which agreed in June to sell its entertainment assets to Walt Disney Co. for $71 billion.

ValueAct also disclosed the following portfolio changes:

  • Added positions in Unifi Inc., Lindblad Expeditions Holdings Inc., Strategic Education Inc., AES Corp., and Enviva Partners.
  • Increased positions in SLM Corp., Alliance Data Systems Corp., Bausch Health Cos. -- the company formerly known as Valeant -- Seagate Technology Plc and Armstrong Flooring Inc.

ValueAct manages about $13 billion on behalf of some of the world’s largest institutional investors, according to its website. It has active stakes in companies that include private equity giant KKR & Co. and Rolls-Royce Holdings Plc.

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