Elliott Investment Management has taken a significant activist position in Hewlett Packard Enterprise (HPE), amassing a stake valued at over $1.5bn and making the $70bn hedge fund one of HPE’s largest shareholders, according to a report by Reuters.
The report cites an unnamed person familiar with the matter—as highlighting that the move positions Elliott, known for its aggressive activist campaigns, to potentially exert influence on the future direction of the $20bn IT infrastructure firm. While Elliott has yet to publicly outline its intentions, sources indicate the firm plans to engage with HPE’s management team.
The hedge fund’s involvement helped push HPE shares up nearly 5% to $14.98 following the news, though the stock remains down 30% year-to-date, underperforming the broader S&P 500 by a wide margin.
This marks Elliott’s latest foray into the technology space, building on its track record with companies such as Dell Technologies and Salesforce, where it has previously sought board representation and strategic change. Known for advocating cost rationalisation and leadership shakeups, Elliott has driven CEO exits at over a dozen portfolio companies since 2022.
HPE’s recent challenges have included rising production costs, margin compression, and heightened exposure to US-China trade tensions. Analysts see the company – whose servers are widely used in AI data processing – as particularly vulnerable to new US tariff measures.
In March, HPE unveiled a plan to slash $350m in costs by 2027, which includes a 5% reduction in its global workforce. The company is also working to complete a $14bn all-cash acquisition of Juniper Networks, a deal currently facing antitrust scrutiny from the US Department of Justice.
While some activist hedge funds are showing restraint amid market volatility, Florida-based Elliot is also currently waging high-profile campaigns at Phillips 66, where it is seeking four board seats, and has recently built positions in BP and Japan’s Sumitomo Realty & Development.
Neither HPE nor Elliott commented on the new investment.
