ValueAct Just Doubled Its Stake in This Beaten-Up SaaS Name. Should Investors Be Buying the Stock?

Investment firm ValueAct recently more than doubled its stake in Toast stock.ValueAct Capital Management made a name for itself as one of the top hedge funds in the industry. The fund invests in a concentrated portfolio of stocks, with a focus on high-quality businesses that it thinks are being undervalued by the market. Something it looks for in particular are good businesses whose stocks look mispriced because of "perceived unfavorable industry conditions." While ValueAct establishing a large, new positio ...