Loeb’s Third Point Re Set for IPO as Einhorn’s Truck Bet Shows Insurers’ Risk (InsuranceJournal)
Investors in Third Point Reinsurance Ltd.’s initial public offering are betting on billionaire hedge fund manager Daniel Loeb. They’re also taking on risk from an unprofitable underwriting operation. The sale could raise as much as $322.2 million and price today, according to data compiled by Bloomberg. Proceeds will boost underwriting capacity at the Bermuda-based reinsurer, which relies on Loeb’s Third Point LLC to oversee an investment portfolio valued at more than $900 million at midyear.
Ackman quits J.C. Penney board, ending feud (TheGazette)
The circus-like atmosphere that had taken over the boardroom at J.C. Penney Company, Inc. (NYSE:JCP) ended on Tuesday with hedge fund billionaire William Ackman stepping down from the board of the struggling U.S. retailer. Ackman’s decision to leave comes after a failed two-year attempt by his Pershing Square Capital Management hedge fund to remake J.C. Penney Company, Inc. (NYSE:JCP)’s into a more upscale retail chain and a week of public fighting with other board members including interim-Chief Executive Officer Myron (Mike) Ullman. People close to Ackman and the company said the hedge fund manager’s decision to leave the board, which Ackman formally agreed to Monday night, was necessary for J.C. Penney Company, Inc. (NYSE:JCP) to focus on its operations and continue the search for a new CEO.
Icahn Rakes in $500 Million as Soros Reportedly Joins Herbalife (NaturalProductsInsider)
Billionaire investor Carl Icahn recently disclosed that his 16.5-percent interest in the nutritional supplements company Herbalife Ltd. (NYSE:HLF) is paying off. In a phone interview last week with anchor Liz Clayman of the Fox Business Network, the 77-year-old businessman confirmed the investment has yielded $500 million. “Yes, we have made $500 million,” he said. Icahn touted Herbalife Ltd. (NYSE:HLF) in the wake of reports that fellow billionaire George Soros has taken a position in the company.
Bill Ackman Accuses Starbucks CEO Of Hypocrisy Over Leaking Memos To The Media (SBUX) (Seattlepi)
Hedge fund manager Bill Ackman called out Howard Schultz yesterday evening on Charlie Rose on PBS. Schultz earlier ripped into Ackman for leaking letters for J.C. Penney Company, Inc. (NYSE:JCP)’s board in the press. …Ackman, who said he’s never spoken to Schultz, hinted that the Starbucks Corporation (NASDAQ:SBUX) CEO may have leaked a memo he wrote to the press. “The reality is Howard Schultz…he brought in Jim Donald. Howard Schultz wrote a memo to the board that was leaked to the press. Not clear who leaked that memo…”
Tories take hundreds of thousands from hedge fund managers while giving them a tax cut (LeftFootForward)
The Conservative Party received over a million pounds in just three months from donors who had private dinners with David Cameron and other senior ministers. This includes £694,370 from donors in the financial sector, including hedge fund managers. In March George Osborne announced a tax cut worth £145 million to hedge funds. Sadiq Khan, Labour’s Shadow Justice Secretary, commented: “The Tories have raked in over £1 million from private dinners with David Cameron and senior Ministers in the last quarter. And more than two thirds of that comes from the City – the bankers and hedge fund bosses whose taxes David Cameron cut.
Why Steinway Is Likely To Be Sold To A Hedge Fund Manager (Kuhf)
Steinway & Sons, the 160-year-old musical instrument maker, is set to change hands. Last month, a private equity firm emerged as the company’s likely buyer. But a mystery bidder — rumored to be hedge fund manager John Paulson — has swooped in at the last minute, and now looks likely to take control of one of the oldest manufacturers in the United States. Paulson made billions betting against the housing market at a time when many thought housing prices could only go up. His reported offer for the company is $458 million.
Hermes seeding venture inks second hedge fund deal (Opalesque)
Hermes BPK Partners, the $2.6 billion alternatives advisory boutique for the BT Pension Scheme, and US private equity firm Northern Lights Capital Group, have announced a second deal for their Accelerator Fund, which invests in early stage and emerging hedge funds. The Accelerator fund has invested in Altalis Capital Partners, a New York-based value-oriented long/short equity strategy, according to a statement from the two firms. The size of the deal was not disclosed but Altalis now has about $150 million in assets under management following the transaction, the statement said.
Jos A. Bank activist letter (CNBC)