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Activist Starboard Value Gets Seats on Marvell Technology Group Ltd. (MRVL)’s Board; Two Other Hedge Funds Disclose Latest Moves

Billionaire Dan Loeb, one of the most scrutinized hedge fund managers and founder of Third Point LLC, believes that the hedge fund industry is in the “first innings of a washout in hedge funds and certain strategies”, as “most investors have been caught offsides at some or multiple points over the past eight months”. In a freshly-revealed letter to investors, Third Point said that the first quarter was “one of the most catastrophic periods of hedge fund performance that we can remember since the inception of this fund” in 1996. However, “volatility is bringing excellent opportunities” according to the New York-based hedge fund, so it does make sense to monitor hedge fund moves at this point in time. For that reason, the following article will discuss three SEC filings recently submitted by several widely-known investment firms such as Starboard Value LP.

At Insider Monkey, we track around 730 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).

Activist Hedge Fund Starboard Reaches Settlement Agreement with Marvell Technology

According to a freshly-amended 13D filing, Jeffrey Smith’s Starboard Value LP currently owns 33.72 million shares of Marvell Technology Group Ltd. (NASDAQ:MRVL), which account for 6.5% of the company’s outstanding common stock. This stake includes 13.32 shares underlying call options. As revealed in Starboard’s initial 13D filing on the company, submitted with the SEC in early February, the activist hedge fund previously owned 34.74 million shares of Marvell Technology. The previous stake included the same amount of shares underlying call options. More importantly, Mr. Smith’s Starboard Value reached an agreement with the U.S. chipmaker under which three Starboard-nominees, Peter A. Feld, Richard S. Hill and Oleg Khaykin, were appointed to the Board. Marvell Technology Group Ltd. (NASDAQ:MRVL) also appointed Robert E. Switz as an additional...