(SFTBY) – Paul Singer’s Elliott Management has sold SoftBank’s stake amid tech selloff; Increased stake in Toshiba

Hedge fund Elliott Management has liquidated almost all of its position in Softbank Corp Group SFTBY earlier this year during the crisis, Financial Times reports.

Elliott lost founder Masayoshi Son’s conviction and ability to close the huge gap between the value of SoftBank’s various holdings and its market capitalization.

Elliott was disappointed with the lack of stock buyback from Son. Instead, Son had opted to continue investing billions of dollars in early-stage startups, much to Eliott’s dismay.

Shortly thereafter, SoftBank’s share price crashed amid the height of pandemic concerns in March 2020. Elliott discussed taking SoftBank private. However, SoftBank instead launched a $41 billion plan to divest assets and a $23 billion share buyback.

In 2020, reports suggested that Elliott had built a $2.5 billion stake in SoftBank. Elliott increased its investment around the time SoftBank shares plunged.

In 2021, Elliott sold a significant portion of those shares at a profit, writes FT. SoftBank London office manager Gordon Singer led Elliott’s investment. He was the son of its founder Paul Singer.

Nabeel Bhanji also headed SoftBank’s London office. Bhanji focused on Toshiba Corporation TOSY, where Elliott built a larger stake. Bhanji joined Toshiba’s board of directors in June.

SoftBank announced a record quarterly loss of $23 billion last week, with Son saying he was “ashamed” of past glee for the group’s performance.

Analysts expected SoftBank to reconsider a management buyout after the dismal results.

SoftBank aimed to post a 4.6 trillion yen ($34.1 billion) gain by settling futures contracts for Alibaba Group Holding Limited BABA.

Price action: SFTBY shares were trading at $22.14 pre-market when last checked on Tuesday.

Comments are closed.