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Blue Harbour Sells Key Positions in 4Q14

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Apr. 17 2015, Published 11:07 a.m. ET

Blue Harbour in brief

Activist investor Clifton S. Robbins founded Blue Harbour Group in 2004. The fund is based in Greenwich, Connecticut. Blue Harbour manages capital on behalf of pension funds, endowments, and other institutional investors.

Blue Harbour initiated some new positions and sold some existing positions in 4Q14. The fourth quarter ended in December. In this series, we’ll go through some of the main positions that the fund traded during the fourth quarter. The value of the fund’s US long portfolio increased from $2.54 billion in 3Q14 to $3.11 billion in 4Q14.

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Blue Harbour’s dropped positions in 4Q14

Blue Harbour’s top positions exits in 4Q14 were Nabors Industries (NBR), CommVault Systems (CVLT), and Juniper Networks (JNPR).

Blue Harbour’s top holdings

Blue Harbour’s top ten holdings include Rackspace Hosting at 13.42%, Akamai Technologies at 10.31%, and Babcock & Wilcox Company at 9.90%. Investors can consider ETFs such as the iShares Core S&P Mid-Cap ETF (IJH), and the iShares Russell Mid-Cap Growth ETF (IWP) for portfolio exposure to Rackspace Hosting. Rackspace Hosting makes up 0.38% of IJH’s portfolio and 0.18% of IWP’s portfolio.

Blue Harbour comments on its investment strategy

On its company website, Blue Harbour stated, “As lead shareholder in each of its core investments, Blue Harbour partners on an exclusively collaborative basis with company management teams to design and implement strategies to unlock significant shareholder value over a two-to-three-year horizon. These strategies are often similar to the strategic actions that private equity investors pursue after taking a company private. As a public markets investor, however, Blue Harbour avoids the control premiums, illiquidity and leverage of the private equity model.”

In the next part of this series, we’ll discuss Blue Harbour’s exit from Nabors Industries.

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