Activist fund ValueAct to raise capital to target new companies

Fri Dec 5, 2014 6:19pm EST
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BOSTON Dec 5 (Reuters) - Activist hedge fund ValueAct Capital Management, which played a key role in shaking up Microsoft Corp's management, plans to raise more capital as it sees a number of investment opportunities.

The San Francisco-based hedge fund, which oversees roughly $15 billion, wrote to shareholders in October that it will accept new money, marking the first time it has raised new capital since 2011, two investors who read the letter told Reuters.

The firm has delivered returns of roughly 13 percent this year, one of the investors said, keeping pace with the S&P 500's gains and far outpacing the average hedge fund's roughly 3.7 percent return this year.

The Wall Street Journal, which first reported the news on Friday, said the firm plans to raise $1.5 billion.

ValueAct tends to make long-term investments and listed Microsoft and Valeant Pharmaceutical International Inc as its two biggest holdings at the end of the third quarter, a regulatory filing shows. It also made new investments in Agrium Inc and Twenty-First Century Fox Inc during the quarter. It did not say which companies it may target next year. (Reporting by Svea Herbst-Bayliss and Nadia Damouni; Editing by Lisa Shumaker)