Elliott Bets Multibillion-Dollar Position on Closing Synopsys’ (SNPS) Peer Discount

Elliott Bets Multibillion-Dollar Position on Closing Synopsys’ (SNPS) Peer Discount

Thu, August 27, 2026 at 4:56 PM GMT+3 3 min read

• SNPS +8.17%
• ^RUT -0.03%

13D Activist Fund is a mutual fund focusing on companies that are targeted by shareholder activists. Its Q2 2026 investor letter highlights a strong quarter driven by a more concentrated portfolio strategy and increased exposure to global activist opportunities. The letter can be downloaded here. In Q2 2026, the Fund's I Shares (DDDIX) returned 32.61%, net of fees and expenses, compared with 21.49% for the Russell 2000 Index. YTD, the Fund returned 32.93% versus the Index's 22.57% return, with assets under management reaching $115 million. The evolving activist landscape, improving corporate governance standards, and favorable small- and mid-cap value environment have created additional opportunities. Please review the Fund's latest investments to gain insights into its key selections for 2026.

In its second-quarter 2026 investor letter, 13D Activist Fund highlighted Synopsys, Inc. (NASDAQ:SNPS). Synopsys, Inc. (NASDAQ:SNPS) provides design IP solutions in the semiconductor and electronics industries. On August 26, 2026, Synopsys, Inc. (NASDAQ:SNPS) closed at $410.00 per share. Over the past month, Synopsys, Inc. (NASDAQ:SNPS) returned 18.83%, while its shares have declined 27.73% in the last 52 weeks. Synopsys, Inc. (NASDAQ:SNPS) has a market capitalization of $78.51 billion, and its stock has traded within a 52-week range of $366.00 to $615.79.

13D Activist Fund stated the following regarding Synopsys, Inc. (NASDAQ:SNPS) in its Q2 2026 investor letter:

"This is a US activist campaign by Elliott Investment Management. Synopsys, Inc. (NASDAQ:SNPS) provides electronic design automation ("EDA") software used to design semiconductor chips. This software is essential for modern chip design, making it a mission-critical component of the semiconductor design process for companies such as Nvidia and Advanced Micro Devices ("AMD"). In addition to EDA, the Company also sells semiconductor intellectual property ("IP"), which consists of pre-configured, reusable chip components. Additionally, in July 2025, Synopsys acquired Ansys for an approximately $35 billion valuation. Ansys is a leading simulation software company used to predict how chip designs will behave in real world environments, including scenarios such as battery performance and crash and safety simulation. Together, these offerings position Synopsis as the only company with a full suite of chip-to-system software. However, despite this strong strategic positioning, the Company has underperformed its closest peer, Cadence Design Systems, by 14.49, 25.98, and 43.56 percentage points over the past 1-, 3-, and 5-year periods, respectively. As a result, Synopsys trades at a discounted valuation of 28.1x NTM P/E, versus 35.5x for Cadence..." (Click here to read the full text)

Synopsys, Inc. (NASDAQ:SNPS) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 85 hedge fund portfolios held Synopsys, Inc. (NASDAQ:SNPS) at the end of the second quarter which was 84 in the previous quarter. While we acknowledge the potential of Synopsys, Inc. (NASDAQ:SNPS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Synopsys, Inc. (NASDAQ:SNPS) and shared Aristotle Capital Management's insight on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.