Matrix Capital Management (B)
Posted: 4 Feb 2012
Date Written: January 26, 2011
Abstract
Ben Balbale, a partner at hedge fund Matrix Capital, must decide whether to exit their investment in Rovi Corporation, a company with a diverse portfolio of patents used primarily for digital interactive guides. Rovi's shares are up over 50% from the time Balbale initiated a position in the middle of 2009.
Learning Objective: Students have an opportunity to consider Matrix Capital's investment philosophy, to evaluate the role of analyst estimates in investment strategies and market efficiency, and to model the valuation of a publicly traded company, Rovi, using discounted cash flow and multiples analysis.
Suggested Citation: Suggested Citation
Baker, Malcolm P. and Lane, David, Matrix Capital Management (B) (January 26, 2011). Harvard Business School Finance Case No. 211-048, Available at SSRN: https://ssrn.com/abstract=1999001
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