Capital Allocators – Inside the Institutional Investment Industry Mason Morfit and Rob Hale – Quiet Activism at ValueAct (EP.462)
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Sep 29, 2025 Mason Morfit and Rob Hale, co-CEOs of ValueAct Capital, discuss their unique approach to activism—prioritizing quiet collaboration over public confrontation. They reflect on their 25-year journey and share insights on investing in Japan, including their work with Olympus. The duo delves into the importance of understanding governance, the effects of excess cash on companies, and the delicate balance between investment quality and influence. Listeners will find valuable lessons on strategic engagement and the evolution of corporate culture.
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Owner Mentality In Public Markets
- ValueAct identified a white space: long-term, engaged public ownership similar to venture and PE roles.
- They built influence via relationships and quiet partnership instead of public confrontation.
Diseases Of Abundance
- High-quality cash-generating companies suffer "diseases of abundance" like strategic drift and excess cash.
- Re-focusing on core strengths and operational excellence often unlocks significant value.
Turning Microsoft Toward Cloud Growth
- ValueAct invested in Microsoft in 2013 and used a Shadow P&L to reveal hidden costs in hardware initiatives.
- They helped refocus spending toward Office 365 and Azure and redesigned compensation to lock in the shift.