Hedge fund Sachem Head built CVS stake during second quarter

Twilio

15/08/2024 04:10

By Svea Herbst-Bayliss
       NEW YORK, Aug 14 (Reuters) - Investment firm Sachem Head
Capital Management built a new stake in CVS Health Corp  CVS.N 
during the second quarter when the healthcare company's stock
price dropped roughly 25%, according to a regulatory filing made
on Wednesday.
    The firm, run by Scott Ferguson, owned 2.45 million shares,
or 0.20% of the company, on June 30, the filing showed.
    A representative for Sachem Head did not comment on what the
firm's plans are for the investment, which is one of the hedge
fund's biggest along with ZoomInfo Technologies  ZI.O  and
Twilio  TWLO.N .
    Speculation has mounted among fund managers that an activist
investor may swoop in to push CVS to make changes that would
boost its share price. Since January, CVS' stock price has
dropped 31% while the broader market has climbed roughly 15%.
    Sachem Head, which settled a proxy fight with US Foods
Holding Corp two years ago, also cut back its holding in the
stock by nearly 30% during the quarter.
    The company remained Sachem Head's biggest U.S. investment
on June 30, with a holding of 9.7 million shares, which was a 4%
stake in the company. This week, Sachem Head said in a new
filing that it had further cut its US Foods investment to
roughly 5 million shares, a 2% stake in the company.
     Investment managers are required to tell regulators how
much stock they owned in U.S. companies at the end of each
quarter in so-called 13F filings. While the filings are backward
looking, other investors watch them closely for hints on trends,
including suggestions of which companies activist investors
might be targeting.

 (Reporting by Svea Herbst-Bayliss; editing by Miral Fahmy)
 ((mailto:svea.herbst@thomsonreuters.com; +617 233 2138; Reuters
Messaging: rm://svea.herbst.thomsonreuters.com@reuters.net/))