Matrix Capital Management (A)

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