Long-term transformation in public markets: ValueAct

On May 12th ValueAct Partner, CEO, and Chief Investment Officer G. Mason Morfit appeared at the ASK Global Conference 2021 hosted by The Korea Economic Daily (KED) in Gwanghwamun, Seoul.

Founded in 2000 and based in San Francisco, ValueAct manages approximately $15 billion in assets. The firm engages in what it calls "transformational activism," addressing not only the balance sheet, board composition, management compensation and M&A at the companies it invests in, but also succession planning, financial planning and analysis, corporate communications, and ESG.

CEO Morfit expressed, “In a market dominated by speculators and traders looking for a quick profit, ValueAct Capital continues to follow a different path.”

Mr. Morfit explained, “ValueAct primarily invests in global public markets and regularly holds its investments for 3-5 years and occasionally for 10 years or more and partners with the boards and management teams of its portfolio companies to help them transform into 21st century global champions.”

“We believe people are everything in business. We believe in relationships, transparency, and trust. We believe in treating people respectfully. We work to leave every company better off than how we found it and we think long term and consider all stakeholders,” Morfit said at the conference.
 
He explained that the firm feels fortunate for the network it has built through a track record of board service by their internal team at forty-eight different companies and contrary to many other ‘activists’, ValueAct has built a reputation for engaging companies in a spirit of collaboration and partnership. “We earn trust, we earn respect, and we share our ideas,” Morfit said to the audience.

Microsoft is one of ValueAct's signature success stories. "The thing I love about the way Mason approaches things is that he has both a point of view as well as a posture that says I want to learn," Microsoft CEO Satya Nadella told the Wall Street Journal.

ValueAct successfully won the respect of the existing management team when it invested in Olympus, the camera maker from Japan. According to CEO Yasuo Takeuchi, “ValueAct doesn't interfere in the details of short-term profits, but provides awareness of major global trends. They are far from a typical so-called activist," Takeuchi told Nikkei.

Also, ValueAct will be nominated to the board of JSR Corporation, a chemical company in Japan, in June of this year. Just last week, they announced a major new investment in Tokyo-based Seven & i Holdings, which owns the 7-Eleven convenience store chain, among other assets.

According to Morfit, “Looking ahead, ValueAct appears poised to continue to engage further in Japan and elsewhere in Asia.”