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ValueAct Capital
Mason Morfit leads ValueAct Capital, the San Francisco activist fund that embeds principals inside companies and took a Microsoft board seat in 2013.
ValueAct Capital
ValueAct Capital was founded in 2000 by Jeffrey Ubben in San Francisco as an activist investment firm built around concentrated, long-term holdings. Ubben established a model of taking 10% to 15% stakes in a small number of publicly traded companies and working constructively with management teams and boards. Mason Morfit, who joined the firm in 2001 and became a named partner, succeeded Ubben as Chief Investment Officer in 2017 and as CEO in 2020, completing a decade-long succession that solidified the firm's second-generation leadership. The firm deploys capital across a deliberately narrow range of 10 to 15 positions, targeting mature companies in sectors including enterprise software, healthcare services, industrial technology, and financial services. ValueAct avoids hostile tactics in favor of boardroom collaboration — a signature move is gaining a board seat and installing a single principal to work inside the company. Confirmed positions have included Salesforce, where the firm held a multi-billion-dollar stake and Morfit joined the board; Citigroup, where ValueAct's engagement led to governance reforms and a board seat for a firm partner; and The New York Times Company, where the firm held a significant stake and pushed for digital subscription growth. Geographic focus is primarily North America, with occasional exposure to European and Japanese companies. In February 2023, ValueAct disclosed a stake in Spotify and initiated discussions on cost discipline and podcast strategy (per CNBC, February 2023). The firm maintains a lean operation from its San Francisco headquarters, with an investment team built around a small number of generalist partners. Adjacent structures include the ValueAct Spring Fund, a $500 million initiative launched in 2020 to pursue social-impact investments alongside traditional returns. Morfit and Ubben are known to participate in elite business forums, but the firm does not operate a formal co-investor club or separate real-asset arm. ValueAct's structural differentiator is the principal-in-residence model: one senior investor embeds with a portfolio company for years rather than deploying a large team of consultants. This architecture allows the firm to avoid the transactional, campaign-style activism that defines peers and instead function as an unpaid, long-duration operating partner. The succession from Ubben to Morfit — executed over 17 years — separates ValueAct from founder-dominated funds that struggle with generational transition.
General information
Firm type
Generalist
Year founded
2000
AUM
Undisclosed
Location
Region
North America
Country
United States
City
San Francisco
Corporate office
San Francisco, CA, United States
Principals
Mason Morfit
Chief Executive Officer and Chief Investment Officer
Sector focus
Frequently asked questions
Who runs investment decisions at ValueAct Capital?
Mason Morfit is the Chief Executive Officer and Chief Investment Officer, responsible for all investment decisions. He assumed the CIO role from founder Jeffrey Ubben in 2017 and became CEO in 2020, completing a gradual succession. Ubben remains involved as a portfolio manager and leads the ValueAct Spring Fund.
How does ValueAct source proprietary deal flow?
ValueAct relies on deep fundamental research and decades-long relationships with corporate executives and board members. The firm does not run a formal sourcing network or co-investor club. Its reputation as a constructive, long-term partner leads companies and other investors to bring opportunities directly to the partnership. The concentrated portfolio — typically 10 to 15 positions — means each investment is the product of years of sector research.
Is ValueAct a hedge fund or an activist fund?
ValueAct operates as a registered investment adviser and functions as a long-duration activist fund, but it rejects the hostile tactics associated with traditional activism. The firm takes minority stakes and seeks board representation to influence strategy, governance, and capital allocation collaboratively. Its holding periods often exceed five years, which distinguishes it from event-driven activists who push for quick sales or breakups.
Does ValueAct participate in private investments or only public equities?
ValueAct invests primarily in publicly traded companies, but the firm's patient-capital approach and board-level engagement blur the line between public and private investing. The firm has not historically maintained a dedicated private equity or venture capital vehicle, though the ValueAct Spring Fund allows for investments across asset classes with a social-impact lens.
How did ValueAct get a board seat at Microsoft?
In 2013, ValueAct accumulated a roughly $2 billion stake in Microsoft and negotiated for a board seat as part of a cooperative agreement. Mason Morfit joined the Microsoft board and participated in the strategic shift toward cloud computing under CEO Satya Nadella. The position was widely cited as a model for constructive activism and generated substantial returns.
What is the ValueAct Spring Fund?
The ValueAct Spring Fund is a $500 million initiative launched in 2020 by Jeffrey Ubben to pursue investments that deliver both market-rate returns and measurable social or environmental impact. It operates alongside the main ValueAct Capital fund but has a distinct mandate and team. Ubben departed the main fund's CIO role to focus on Spring, signaling the firm's commitment to the strategy.
How is ValueAct's approach different from other activist funds?
ValueAct avoids public proxy fights, poison-pen letters, and breakup demands. Instead, the firm seeks a single board seat and embeds one principal inside the company to work with management on strategy, operations, and capital allocation over multiple years. This principal-in-residence model is rare among activists, who typically deploy teams of consultants for short, transactional engagements.
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