Starboard Increases Salesforce Stake Amid Stock Weakness

Activist hedge fund Starboard Value, which first pushed for changes at Salesforce (CRM.N) three years ago, raised its stake in the U.S. software company by nearly 50% in the second quarter, according to a regulatory filing on Thursday.

As of June 30, Starboard owned 1.3 million shares, up from 849,679 shares at the end of the first quarter when it had already boosted its stake by almost 52%. The move comes amid a nearly 30% drop in Salesforce’s stock price since January and a 9% decline over the past year.

Salesforce, valued at $223 billion, faced pressure from activist investors in late 2022 and early 2023. Many of these investors reduced or exited their positions after the company reported strong results, added a new board director, and implemented other changes. Starboard, known for revisiting past investments if a company backslides on promised reforms, appears to be increasing pressure again.

Starboard CEO Jeffrey Smith previously said Salesforce still had potential to improve efficiency and profitability. The hedge fund also boosted its stake in Pfizer (PFE.N) by 10.5% to 8.5 million shares and reduced its holding in Autodesk (ADSK.O) by nearly 27% after settling a prior engagement with the company.

The filing is a 13F report, which reflects fund holdings at the end of the previous quarter and is closely watched for insights into investment trends.