Sachem Head Capital Management
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Sachem Head Capital Management is an American value-oriented
investment management Investment management (sometimes referred to more generally as financial asset management) is the professional asset management of various Security (finance), securities, including shareholdings, Bond (finance), bonds, and other assets, such as r ...
firm based in
New York City New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...
, managed by Scott Ferguson. The fund was founded in 2012. According to ''Fortune'', Ferguson "tends to be less combative than other activists."


History

Ferguson, a protégé of
Bill Ackman William Albert Ackman (born May 11, 1966) is an American billionaire hedge fund manager who is the founder and chief executive officer of Pershing Square Capital Management, a hedge fund management company. His investment approach has made him ...
at
Pershing Square Capital Management Pershing Square Capital Management is an American hedge fund management company founded and run by Bill Ackman, headquartered in New York City. Company history In 2004, Ackman started Pershing Square Capital Management with $54 million in fundi ...
, founded Sachem Head in 2012. The name derives from Sachem Head, an overlook in the
Pocumtuck Range The Pocumtuck Range, also referred to as the Pocumtuck Ridge, is the northernmost subrange of the Metacomet Ridge mountain range of southern New England, itself a subrange of the Appalachian Mountains. Located in Franklin County, Massachusetts, ...
in New England. Ernesto Cruz, formerly of JAT Capital and Highline Capital Management, joined Sachem Head in 2013, becoming a partner and an analyst of technology stocks. In February 2017, he left Sachem Head to become a portfolio manager for GIC Private Ltd., Singapore's sovereign wealth fund. A 2016 article in Fortune noted that while other protégés of Bill Ackman were "struggling," Ferguson was "doing well," outperforming not only Ackman but the market. In 2014, Sachem Head's fund returned 20.5%. As of January 2024, Sachem Head had approximately $3.4 billion in assets under management.


Investments

Sachem has taken positions in Zoetis Inc., an animal health-care group. A month after CDK Global, an IT provider, went public in early October 2014, Sachem Head became its biggest investor. As of 2016, CDK's stock had risen by more than 80%. In February 2017, Sachem Head's largest position was in
Autodesk Autodesk, Inc. is an American multinational software corporation that provides software products and services for the architecture, engineering, construction, manufacturing, media, education, and entertainment industries. Autodesk is headquarte ...
, which manufactures 3D
computer-aided design Computer-aided design (CAD) is the use of computers (or ) to aid in the creation, modification, analysis, or optimization of a design. This software is used to increase the productivity of the designer, improve the quality of design, improve c ...
(CAD) software, and which returned 7.7% in 2016. In January 2018, Sachem Head asked
Whitbread Whitbread is a British multinational hotel and restaurant company headquartered in Houghton Regis, England. The business was founded as a brewery in 1742 by Samuel Whitbread in partnership with Godfrey and Thomas Shewell, with premises in L ...
, owner of the
Premier Inn Premier Inn Limited, a subsidiary of Whitbread, is a British limited-service hotel chain with operations in the United Kingdom, Ireland, Germany, Austria, United Arab Emirates, and Qatar. As of 2025, the company owned and operated over 800 h ...
chain in the United Kingdom, "to consider a break up of its
Costa Coffee Costa Limited, trading as Costa Coffee, is a coffeehouse chain with headquarters in Loudwater, Buckinghamshire, England, that operates in the United Kingdom and 37 other countries. Costa Coffee was founded in London in 1971 by Sergio Costa (co ...
chain from its hotels and restaurant businesses." Sachem Head believed that such an action would "boost the value of its individual businesses."


References

{{Reflist Financial services companies established in 2012 Hedge fund firms in New York City Investment companies of the United States