Matrix Capital Management (B)

Posted: 4 Feb 2012

See all articles by Malcolm P. Baker

Malcolm P. Baker

Harvard Business School; National Bureau of Economic Research (NBER)

David Lane

Harvard University - Business School (HBS)

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

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

Malcolm P. Baker (Contact Author)

Harvard Business School ( email )

Boston, MA 02163
United States
617-495-6566 (Phone)

HOME PAGE: http://www.people.hbs.edu/mbaker

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

David Lane

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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