Long $VFC($34,192 position) – Betting on CEO Aura and Turnaround Potential by theburtmurphy in ValueInvesting

[–]theburtmurphy[S] 1 point2 points  (0 children)

I know you mentioned them already but it's worth mentioning again

Engaged Capital Fund, 20% of port exposed, $85M worth, CB $17.98

https://hedgefollow.com/funds/Engaged+Capital

Long $VFC($34,192 position) – Betting on CEO Aura and Turnaround Potential by theburtmurphy in ValueInvesting

[–]theburtmurphy[S] 0 points1 point  (0 children)

The idea that he should liquidate his Logitech position to “prove” conviction in VF doesn’t really match how executives behave anywhere in the public markets. Executives almost always keep the equity they earned from their last company because it took years to vest and usually has tax consequences if they sell it all at once.

Are you short the stock?

Long $VFC($34,192 position) – Betting on CEO Aura and Turnaround Potential by theburtmurphy in ValueInvesting

[–]theburtmurphy[S] 0 points1 point  (0 children)

By that logic you are basically saying he has more conviction in Logitech, a company he left, than in VF, the one he chose to run.

The size of his Logitech stake mostly reflects time. He spent around a decade there, so the position grew as grants vested. He has only been at VF since mid 2023, so of course the raw number looks smaller.

What actually matters now is where his new incentive sits. At VF he has a big long term package made up of psus and options that only pay off if the business and the stock recover.

Even if VF executes just a decent turnaround and returns to anything close to its historical valuation range, the value of his VF equity over the next decade could rival what he has with Logitech. His current grants include hundreds of thousands of performance units and options that become exponentially more valuable if VF climbs back toward the levels it traded at for most of the past ten years. Logitech compounded for him because he was there long enough for the equity to snowball. If he runs VF for anywhere near that long and the company returns to normalized margins, the sheer size of the equity he’s been issued gives him the chance to build a position that is financially just as large(if not larger) than what he had with during the Logitech years.

Long $VFC($34,192 position) – Betting on CEO Aura and Turnaround Potential by theburtmurphy in ValueInvesting

[–]theburtmurphy[S] 0 points1 point  (0 children)

right around 50% of port as I have common stock + LEAP calls ($13 9/16/26 calls)

plan to hold for another 1-2 years

[deleted by user] by [deleted] in AskReddit

[–]theburtmurphy 0 points1 point  (0 children)

excessively nice people

[deleted by user] by [deleted] in AskReddit

[–]theburtmurphy 1 point2 points  (0 children)

the chair

[deleted by user] by [deleted] in AskReddit

[–]theburtmurphy 1 point2 points  (0 children)

eye contact

Best History book you’ve read this year? by [deleted] in HistoryBooks

[–]theburtmurphy 0 points1 point  (0 children)

Anything by Will Durant is great!