Dr. Hugh Akston
Hedge fund manager, long/short equity, value

Emulex: Market Is Missing The Activism Impact

We believe the market is missing the dramatic changes that have occurred at Emulex (NYSE:ELX) over the past twelve months. Activist investors Elliott Management and Starboard Value have successfully fought for a shareholder-friendly transformation, which is poised to unlock significant value. These changes include a new CEO, a new CFO, five new independent Board members, a massive $200m share repurchase program, a recapitalized balance sheet, and an operational restructuring that is expected to result in $30m of annual cost savings. Despite all of these positive developments, the stock is trading at the same price it was prior to the start of the activism campaign.

We believe our report provides the first look...

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