Activist hedge fund Starboard Value has acquired a nearly 5% stake in Clearwater Analytics (CWAN.N), pressuring the investment accounting software provider to unlock shareholder value, according to a report by Reuters.
Starboard is urging Clearwater to consider a structured sales process with independent advisers if credible buyer interest exists, reflecting the hedge fund’s view that the company is significantly undervalued.
The Boise-based firm, valued at $6.4bn, saw its stock fall 20% in 2025 amid investor concerns over integration risks and rising leverage from acquisitions of Enfusion, Bistro, and Beacon. Starboard believes Clearwater could attract interest from both strategic and private equity buyers.
If a sale is not viable, Starboard recommends management focus on revenue growth and margin improvement once recent acquisitions are fully integrated. Clearwater’s client base includes insurers, asset managers, hedge funds, and banks.
