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%, acquiring 17.8 million shares valued at approximately $1.3 billion at current market prices.
- • The hedge fund increased its Autodesk holdings from 10 million shares (June 2016, valued at $550 million) to 17.8 million shares in October 2016, demonstrating significant conviction in the software company's 3D printing strategy.
- • Soroban Capital Partners has delivered returns exceeding 130% since its 2012 inception, substantially outperforming the DJ Credit Suisse Hedge Fund Index (19% return) and HFRX Activist Index (45% return) over the same period.
- • The investment reflects confidence in Autodesk's positioning within the 3D printing software ecosystem, as the company simultaneously pursues its own investments in the sector, including a $100 million Spark Investment Fund and a $10 million investment in Carbon3D.
- • Soroban Capital Partners, founded by Eric W. Mandelblatt in 2010, operates with a team including Scott Friedman and Gaurav Kapdia—both TPG-Axon Capital Management alumni—signaling an experienced, specialized investment approach.
Summary
Soroban Capital Partners LP, a New York-based hedge fund managing over $16 billion in assets, has significantly amplified its exposure to Autodesk Inc., a California-based 3D printing software manufacturer, by doubling its equity stake to 8% according to Securities and Exchange Commission filings released this week. The hedge fund now holds 17.8 million Autodesk shares valued at approximately $1.3 billion at current market prices, up from a 4% stake reported earlier.
The scale of this commitment becomes apparent when examining Soroban's acquisition timeline. In June 2016, the hedge fund held 10 million Autodesk shares valued at $550 million (at a $53 per share price point). Within four months, Soroban increased its position by 78% to 17.8 million shares, signaling sustained confidence in Autodesk's strategic direction and competitive positioning within the expanding 3D printing software market.
Soroban Capital Partners' investment strategy has demonstrated measurable success since Eric W. Mandelblatt founded the firm in 2010. The hedge fund has achieved cumulative returns exceeding 130% since its first reporting period in 2012, substantially outperforming major benchmarks. This compares favorably to the DJ Credit Suisse Hedge Fund Index, which returned 19% over the same period, and the HFRX Activist Index at 45%, positioning Soroban among the higher-performing vehicles in institutional investment circles.
Mandelblatt assembled Soroban's investment team from proven pedigrees, including Scott Friedman and Gaurav Kapadia, both former colleagues from TPG-Axon Capital Management. Mandelblatt himself previously served as an analyst at Goldman Sachs covering the energy sector, indicating a disciplined analytical foundation underlying the firm's stock selection process. The fund's aggressive accumulation of Autodesk shares aligns with the broader market's growing interest in 3D printing technology, particularly as Autodesk itself has committed $100 million to its Spark Investment Fund and invested $10 million in Carbon3D to advance high-speed printing capabilities.
The scale of this commitment becomes apparent when examining Soroban's acquisition timeline. In June 2016, the hedge fund held 10 million Autodesk shares valued at $550 million (at a $53 per share price point). Within four months, Soroban increased its position by 78% to 17.8 million shares, signaling sustained confidence in Autodesk's strategic direction and competitive positioning within the expanding 3D printing software market.
Soroban Capital Partners' investment strategy has demonstrated measurable success since Eric W. Mandelblatt founded the firm in 2010. The hedge fund has achieved cumulative returns exceeding 130% since its first reporting period in 2012, substantially outperforming major benchmarks. This compares favorably to the DJ Credit Suisse Hedge Fund Index, which returned 19% over the same period, and the HFRX Activist Index at 45%, positioning Soroban among the higher-performing vehicles in institutional investment circles.
Mandelblatt assembled Soroban's investment team from proven pedigrees, including Scott Friedman and Gaurav Kapadia, both former colleagues from TPG-Axon Capital Management. Mandelblatt himself previously served as an analyst at Goldman Sachs covering the energy sector, indicating a disciplined analytical foundation underlying the firm's stock selection process. The fund's aggressive accumulation of Autodesk shares aligns with the broader market's growing interest in 3D printing technology, particularly as Autodesk itself has committed $100 million to its Spark Investment Fund and invested $10 million in Carbon3D to advance high-speed printing capabilities.
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