Here Are 7 Out Of Favor Stocks In Blue Harbour Group’s Portfolio

in INVESTING IDEAS by

Here are the stocks in Clifton Robbins’ portfolio which have traded lower over the last month. Investors may want to take a closer look at the names below.


Blue Harbour Group’s Recent Price Pull-Back Stocks

To find stocks in the firm’s portfolio that may be unpopular at the moment and trading at cheap valuations, I ranked the firm’s holdings by price pullbacks. The ranking table below lists the stocks in Blue Harbour Group’s portfolio by stock price performance over the last 30 days.

Blue Harbour Group Recent Price Pull-Back Stocks
Ticker Name Price 1-mo Ago Current Price % Change 1-mo
ON ON SEMICONDUCTOR CORP $25.75 $22.52 -12.6%
XLNX XILINX INC $70.37 $65.88 -6.4%
WCC WESCO INTL INC $60.55 $57.65 -4.8%
MDRX ALLSCRIPTS HEALTHCARE SOLUTN $12.75 $12.16 -4.6%
MD MEDNAX INC $45.25 $43.56 -3.7%
ISBC INVESTORS BANCORP INC NEW $13.43 $12.99 -3.3%
COMM COMMSCOPE HLDG CO INC $29.79 $29.44 -1.2%

ON Semiconductor Corporation (NASDAQ: ON) stock price has fallen by -12.6% over the last month. It may be worth taking a closer look at the stock, especially after this recent decline.

The next largest stock decline in Clifton Robbins’s portfolio is Xilinx, Inc. (NASDAQ: XLNX) which has seen its share price fall by -6.4% over the last month. Other notable holdings with a recent pull-back include WESCO International, Inc. (NYSE: WCC), Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX), Mednax, Inc (NYSE: MD), Investors Bancorp, Inc. (NASDAQ: ISBC) and CommScope Holding Company, Inc. (NASDAQ: COMM).


Why Follow Clifton Robbins’s Portfolio?

Clifton Robbins is a highly respected activist investor and the founder and CEO of Blue Harbour Group. While Blue Harbour is an activist investor, the company stresses that it only works collaboratively with management. In fact, the firm prides itself on the fact that it has never engaged in a proxy war or waged a media campaign against a company.

Before founding Blue Harbour, much of Clifton’s career was in private equity which appears to come through in his approach to investing. He likes to think like an owner, and ask the question: “if we owned the whole company what would we do differently?”

Robbins has a specific niche that he operates in. He looks for companies worth less than $10 billion where he believes the management team is strong but may not be aware of all the ways they can unlock value. He is only interested in working with leaders who are receptive to his ideas. Robbins has also stated he is not interested in fixing broken companies.

His focus therefore is on unlocking value in quality, well managed companies that he thinks are being undervalued by the market. Blue Harbour encourages companies to improve shareholder value by enhancing capital allocation strategies, executing strategic initiatives, and aligning management and shareholder interests. With a solid track record, it is worth taking a deeper look into his current equity holdings.

Managers with more than $100 million in qualifying assets under management are required to disclose their holdings to the SEC each quarter via 13F filings. Qualifying assets include long positions in U.S. equities and ADRs, call/put options, and convertible debt securities. Shorts, cash positions, foreign investments and other assets are not included. It is important to note that these filings are due 45 days after the quarter end date. Therefore, Blue Harbour Group’s holdings above represent positions held as of March 31st and not necessarily reflective of the fund’s current stock holdings.

However, most can agree that with thousands of stocks traded on U.S. exchanges, doing thorough research on each one is nearly impossible for smaller investors. Leveraging the resources of the largest hedge funds on Wall Street can be a powerful way to narrow down the list.

The ideas section of finbox.io tracks top investors and trending investment themes. You can get the latest data on the holdings discussed above at the Blue Harbour Group page.

As of this writing, I did not hold a position in any of the aforementioned securities and this is not a buy or sell recommendation on any security mentioned.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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