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The activist fund that shook up Yahoo is crushing it

Aug 19, 2016, 01:30 IST

Jeff Smith, CEO of Starboard Value, L.P., speaks at a panel discussion at the SALT conference in Las VegasThomson Reuters

The activist hedge fund that shook up Yahoo is crushing it as many of its peers struggle.

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New York-based Starboard Value's flagship fund is up 8.25% through July this year, according to a performance document viewed by Business Insider.

That compares to a 4.36% return for the HFRI event-driven index, which measures Starboard's activist competitors, over the same period.

Meanwhile, the average hedge fund, which includes firms employing all strategies, is up about only 3% this year through July, according to HFR.

Activist hedge funds try to boost companies' stock values by taking big stakes in the companies and influencing changes with management.

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Starboard Value, which manages about $4.7 billion in assets, has influenced Marissa Mayer's Yahoo. In April, Yahoo agreed to add four of Starboard's independent directors to its board, for instance.

Its stock price has been rising since February this year.

Starboard's performance this year represents a return to form for the firm. Last year, the flagship fund dropped -8.55%, for instance. It rose 21.45% and 10.7% in 2014 and 2013 respectively, according to the document.

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Starboard's Yahoo position is the hedge fund's largest, making up about 15.7% of its fund, the investor update said.

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Starboard's next biggest stock positions are Marvell Technology Group, Advance Auto Parts, The Brink's Company, WestRock Company and Depomed, Inc. It also holds positions in Macy's, Office Depot and Darden Restaurants, according to the document.

The firm also announced a new stake in Stewart Information earlier this week, Bloomberg reported.

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