Elliott Is Circling Once Again… And HPE’s 30% Drop Just Made It Shark Bait

Unlike some activist investors who write a letter, leak it to the press, and hope for a nice earnings call mention… Elliott Management doesn’t screw around.

When Paul Singer’s hedge fund shows up, it’s not to observe. It’s to take control. They’ve ousted CEOs, restructured tech giants, and squeezed billions out of companies that thought they could just ride things out. At SAP, Elliott helped usher in a new CEO less than six months after taking a stake. At Citrix, they orchestrated a $13 billion buyout. And at Salesforce, they walked in and got Marc Benioff to suddenly care about operating margins more than throwing thought leadership conferences.

Now, they’ve taken aim at Hewlett Packard Enterprise, and if you're in the C-suite, it might be time to check the locks on your office door.

Elliott has built a stake worth more than $1.5 billion in HPE, making them one of the company’s largest shareholders. No press release, no sit-down interview… just a giant amount of money dropped into the mix and a clear message: We’re here now. And the timing couldn’t be more awkward for HPE.

The company’s stock has been hammered this year… down 30% year-to-date, with March alone bringing a 10% single-day plunge after the company cut back full-year profit forecasts. They blamed tariffs (very original), discounting, and “execution issues” for the weak outlook (a phrase that I translate to “we have no idea why this is happening”).

On top of that, margins on server sales have been thinning out as HPE continues to cut prices to stay competitive. In fact, CEO Antonio Neri recently greenlit the elimination of 3,000 jobs, in what looked like a last-ditch effort to reassure investors that cost-cutting is underway.

Then there’s the $14 billion elephant in the room… HPE’s proposed acquisition of Juniper Networks. Announced earlier this year as a strategic leap into networking dominance, the deal has instead turned into a never ending legal problem. The Department of Justice sued to block the acquisition in January, arguing it would reduce competition and drive up prices. A trial is set for July, which leaves the deal (and HPE’s strategic vision) dangling in a court.

All of this creates a perfect situation for Elliot. Their playbook is pretty consistent: expose inefficiencies, pressure leadership, push for cost cuts, and if needed, suggest new management more aligned with shareholder value. They’ve done it with Citrix. They’ve done it with SAP. And most recently, they took a $2.5 billion stake in Phillips 66 and sued the company to force board-level changes.

So far, Elliott hasn’t said exactly what it wants from HPE… but you don’t buy $1.5 billion worth of a struggling tech company just to attend the annual meeting and enjoy the coffee cake. Their silence is the prelude, not the strategy.

If you’re a shareholder, Elliott’s arrival might actually be the best news you’ve heard all year. Their involvement has a habit of jolting sleepy companies back to life (in other words: lifting the stock price). But if you’re in the executive suite, especially someone like CEO Antonio Neri? The outlook is a little different. Elliott’s version of “constructive feedback” usually ends with a revised org chart… and a former CEO “exploring new opportunities” from their lake house.

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Stock.News does not have positions in companies mentioned.