ValueAct boosts Disney and Salesforce stakes

Mason Morfit's ValueAct Capital Management has significantly increased its investments in Salesforce and Disney during the second quarter of 2024, as revealed in a recent regulatory filing. Morfit, who serves on Salesforce's board, raised the firm's stake in the customer relationship management giant by over 12%, bringing its total investment to more than $1 billion. This makes Salesforce ValueAct's largest position as of June 30. Additionally, the fund boosted its Disney holdings by more than 13%, making it the third-largest investment at over $600 million. Despite these increases, both companies faced substantial declines in the second quarter, with Salesforce shares dropping nearly 15% and Disney's stock plummeting almost 19%. As of the third quarter, Salesforce has seen a modest recovery of just 1.5%, while Disney has continued to struggle, losing another 11%. These challenges highlight the difficulties faced by both companies, which are part of the Dow Jones Industrial Average. ValueAct's recent moves were limited to these two stocks, as the firm did not initiate any new positions during the quarter. Morfit also divested from CBRE Group and Illumina, missing potential rebounds in those stocks. The portfolio now consists of only 10 stocks, following significant reductions in other holdings, including a nearly 70% cut in Fiserv. Since taking the helm in 2020, Morfit has navigated ValueAct through a concentrated investment strategy, focusing on fewer but larger positions in the market.