7 Blue Harbour Group Stocks With Big Sales Growth

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Open Text Corporation (NASDAQ: OTEX) and ON Semiconductor Corporation (NASDAQ: ON) are among the high growth stocks that Clifton Robbins owns based on recent SEC filings. Growth investors may want to take a closer look at the names below.


Blue Harbour Group’s Fastest Growing Stocks

Analysts often look at companies as either thriving, surviving or dying. Analyzing a company’s revenue growth can help distinguish between these stages. Growth of over 10% typically signifies the core business is doing very well and the company’s products and services are in demand.

The table below lists 7 stocks in Blue Harbour Group’s portfolio that have strong top-line growth.

Blue Harbour Group Fastest Growing Stocks
Ticker Name Revenue Growth % Of Portfolio
OTEX OPEN TEXT CORP 29.0% 11.8%
ON ON SEMICONDUCTOR CORP 21.2% 4.7%
MDRX ALLSCRIPTS HEALTHCARE SOLUTN 17.9% 0.1%
FTNT FORTINET INC 16.7% 5.1%
ISBC INVESTORS BANCORP INC NEW 10.4% 14.0%
XLNX XILINX INC 8.1% 12.5%
MD MEDNAX INC 7.9% 8.7%

Open Text Corporation (NasdaqGS: OTEX) is the fastest growing company in Blue Harbour Group’s portfolio. The company’s LTM total revenue of $2,725 million is up 29.0% year-over-year. Very impressive. Note that the stock price is up 13.8% over the last twelve months.

ON Semiconductor Corporation (NASDAQ: ON) appears to be the second highest growth stock in the portfolio. The company’s latest top-line improvement of 21.2% is very intriguing. With 17.9% LTM sales growth, Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX) is the third fastest growing company in Clifton Robbins’s portfolio.

Other notable growth stocks include Fortinet, Inc. (NASDAQ: FTNT), Investors Bancorp, Inc.(NASDAQ: ISBC), Xilinx, Inc. (NASDAQ: XLNX) and Mednax, Inc (NYSE: MD).


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.

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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