In its second-quarter 13F filing, Jeff Smith's activist firm Starboard Value revealed a portfolio valued at $4.52 billion, highlighting significant new investments and strategic exits. The most notable change was the initiation of a new $389.34 million position in software company Dynatrace (DT), immediately making it one of the fund's top five holdings. This new stake comprises 8.87 million shares, accounting for 8.61% of the portfolio. Starboard also established a smaller new position in industrial machinery manufacturer Flowserve (FLS).
Concurrent with its new activist position, Starboard significantly increased its investment in the iShares Core S&P Mid-Cap ETF (IJH), adding over 3 million shares. This move boosted the holding's value to $684.57 million, making the broad-market ETF the firm's largest position at 15.13% of the portfolio. During the quarter, Starboard was actively engaging with Dynatrace management, pushing for changes such as accelerated share buybacks to enhance shareholder value.
To fund these new and expanded positions, Starboard Value exited several holdings entirely and trimmed others. The firm sold off its complete stakes in Gen Digital (GEN), Becton, Dickinson and Co. (BDX), Rogers (ROG), and CWAN. Additionally, significant reductions were made in holdings of Qorvo (QRVO), Match Group (MTCH), and TripAdvisor (TRIP). These decisive portfolio adjustments signal a strategic shift, concentrating capital in new activist targets and broad market funds while moving away from prior investments.