Jeffrey Ubben’s ValueAct Capital Master Fund returned 9% net for the second quarter, bringing its year-to-date return to 4% net. In their second-quarter letter to investors, which was obtained by Hedge Fund Alpha, the ValueAct team noted that two main narratives have been driving the equity markets this year.
The first is the Trump administration’s “unorthodox economic policies,” while the second is quick advances in artificial intelligence. According to the ValueAct team, both narratives have triggered a “relentless” flow of headlines, resulting in “waves of panic and euphoria” and “extreme stock dispersion between sectors and within sectors.”
ValueAct's bold bets: Roblox and Rocket. Here’s the deep dive.
Also see ValueAct Capial Q1 2025 letter here:
- ValueAct Buys Entegris, Applied Materials, Amazon, Trims Meta Platforms [Q1 Letter]
- ValueAct Capital Slashed Its Stakes in Core Positions Toast, Roblox in Q1
Adding during the April plunge
ValueAct Capital tapped into the April selloff to add to the positions in which the team sees the greatest upside potential. They noted that many names re-rated quickly, but several of them are still flat or even in the red year to date. The ValueAct team sees sizable risk-adjusted upside in their portfolio.
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