Activist investor Elliott Management has sold its entire stake in tech major Cognizant. According to the latest holdings information filed by the fund with the US SEC (Securities and Exchange Commission) on May 15, Cognizant does not figure in the list. Elliott Management held 1.12 million shares at the end of Q4 (October-December).
Peter Bendor Samuel, CEO, Everest Research group, says an Elliott exit would be welcomed by Cognizant. “Elliott’s demands to raise (profit) margins have created an unhelpful constraint on Cognizant at a time where margin flexibility is necessary to invest in the new digital business models. However, the damage is already done and Cognizant has already committed to the street that it will raise margins and so must follow through on the promise,” he said.
