Key Takeaways
- • Soroban Capital Partners LP, a $16 billion New York-based hedge fund, doubled its stake in Autodesk Inc. (NASDAQ: ADSK) from 4% to 8% of the company, filing new ownership documentation with the SEC in October 2016.
- • The hedge fund's Autodesk holding grew from 10 million shares valued at $550 million in June 2016 to 17.8 million shares valued at approximately $1.3 billion at current market prices, reflecting aggressive accumulation in the software manufacturer.
- • Soroban Capital Partners, founded in 2010 by Eric W. Mandelblatt, has delivered returns exceeding 130% since 2012—significantly outperforming the DJ Credit Suisse Hedge Fund Index (19% return) and HFRX Activist Index (45% return) over the same period.
- • The investment positions Soroban as one of Autodesk's largest shareholders, signaling hedge fund conviction in the 3D printing software company's long-term value proposition despite the firm's activist investment approach.
- • Mandelblatt assembled Soroban's investment team from TPG-Axon Capital Management alumni, including Scott Friedman and Gaurav Kapadia, and previously worked as an analyst at Goldman Sachs covering the energy sector.
Summary
Soroban Capital Partners LP, a New York-based hedge fund managing over $16 billion in assets, has dramatically increased its investment in Autodesk Inc., the California-based 3D printing software manufacturer. According to SEC filings released in October 2016, the hedge fund doubled its ownership stake in Autodesk from 4% to 8%, establishing itself as one of the company's largest investors. The move reflects a significant capital deployment strategy by one of the hedge fund industry's outperforming managers.
The scale of Soroban's bet on Autodesk expanded substantially over a four-month period. In June 2016, the firm held 10 million Autodesk shares valued at $550 million when the stock traded at $53 per share. By October, Soroban's position had grown to 17.8 million shares, valued at approximately $1.3 billion at prevailing market prices. This represents a $750 million increase in capital committed to the software company, underscoring the hedge fund's conviction in Autodesk's strategic positioning in the 3D printing software sector.
Soroban Capital Partners' investment track record provides context for the significance of this capital allocation. Founded in 2010 by Eric W. Mandelblatt, the hedge fund has generated returns exceeding 130% since its first reporting period in 2012. These returns substantially outpace major hedge fund benchmarks: the DJ Credit Suisse Hedge Fund Index returned 19% over the same period, while the HFRX Activist Index returned 45%. This outperformance demonstrates Mandelblatt's investment acumen and the efficacy of his activist-oriented investment strategy.
Mandelblatt built Soroban's investment team through selective recruitment from TPG-Axon Capital Management, where he previously worked. Key team members include Scott Friedman and Gaurav Kapadia, both TPG-Axon alumni. Prior to his hedge fund career, Mandelblatt served as an energy sector analyst at Goldman Sachs, establishing a foundation in fundamental research and fundamental-driven investing that has shaped Soroban's analytical approach. The hedge fund's concentrated bet on Autodesk signals management's belief that the software firm's valuation and growth prospects merit substantial capital deployment during this period.
The scale of Soroban's bet on Autodesk expanded substantially over a four-month period. In June 2016, the firm held 10 million Autodesk shares valued at $550 million when the stock traded at $53 per share. By October, Soroban's position had grown to 17.8 million shares, valued at approximately $1.3 billion at prevailing market prices. This represents a $750 million increase in capital committed to the software company, underscoring the hedge fund's conviction in Autodesk's strategic positioning in the 3D printing software sector.
Soroban Capital Partners' investment track record provides context for the significance of this capital allocation. Founded in 2010 by Eric W. Mandelblatt, the hedge fund has generated returns exceeding 130% since its first reporting period in 2012. These returns substantially outpace major hedge fund benchmarks: the DJ Credit Suisse Hedge Fund Index returned 19% over the same period, while the HFRX Activist Index returned 45%. This outperformance demonstrates Mandelblatt's investment acumen and the efficacy of his activist-oriented investment strategy.
Mandelblatt built Soroban's investment team through selective recruitment from TPG-Axon Capital Management, where he previously worked. Key team members include Scott Friedman and Gaurav Kapadia, both TPG-Axon alumni. Prior to his hedge fund career, Mandelblatt served as an energy sector analyst at Goldman Sachs, establishing a foundation in fundamental research and fundamental-driven investing that has shaped Soroban's analytical approach. The hedge fund's concentrated bet on Autodesk signals management's belief that the software firm's valuation and growth prospects merit substantial capital deployment during this period.
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