Tepper’s Long On European Equities, Short On US Bonds Approach Is Correct: Barings (CNBC)
Amid the political uncertainty in Europe and expectations of a stronger U.S. economy, David Tepper‘s approach to go long on European equities and short on U.S. bonds is right, an investment director told CNCB on Thursday. American hedge fund manager David Tepper told CNBC on Wednesday that once the French election is out of the way, there’s nothing else to worry about in Europe. This is despite a federal election in Germany and a potential general election in Italy. “If we are short U.S. bonds we are betting on a stronger economy here. That’s the bet. So we are betting on strength one way or the other here, strength around the world in one way or the another,” Tepper said.
Elliot’s Choice To Run Arconic Hit With Claims He’s Violating Noncompete Deal (TheStreet)
Elliott Management Group, the activist hedge fund currently engaged in a fight with Arconic (ARNC), said in a filing this week that the former employer of its choice to be the firm’s new CEO claims he is violating a noncompete agreement. On January 31 Elliott said it hired Larry Lawson, former Spirit Aerosystems Holdings (SPR) CEO, as a consultant at $100,000 a month salary. In a filing on March 8, Elliott informed the SEC that, “In connection with the Consulting Agreement, Elliott Associates, Elliott International and Mr. Lawson also entered into an Indemnification Agreement pursuant to which Elliott Associates and Elliott International have agreed to indemnify Mr. Lawson for certain potential claims, losses and expenses.
Utility-Focused Hedge Fund Electron Capital Hires Melloul From TIAA (Reuters)
Hedge fund Electron Capital Partners, which invests in global utilities and infrastructure companies, has hired Eric Melloul as a partner from financial services company TIAA, a person familiar with the move said on Thursday. Melloul, who joins the $610 million fund as its sixth investment professional, was responsible for overseeing portfolios with combined assets of $1.3 billion at TIAA. Electron, an 11-year old hedge fund founded and run by Jos Shaver, is attracting attention. Many large investors are searching for assets not correlated to the broader stock market or interest rate movements as the U.S. Federal Reserve is signaling plans to raise borrowing costs, analysts said.
Ackman Lost Bet On Herbalife (TheStreet)
Judging by stock market indications, hedge fund boss Bill Ackman has lost his $1-billion short bet on Herbalife (HLF) . Ackman’s 2012 shorting attempt of Herbalife-claiming that the company is a pyramid scheme-seems in all likelihood, to have gone kaput. Shares are at much higher levels, making Ackman’s big short a very costly bet. We think that Ackman, famous for taking contrarian positions on Valeant (VRX) and Chipotle (CMG) , should probably throw in the towel and accept Herbalife’s relentless growth curve. Since the early days where Mark Hughes was allegedly, “selling a protein powder out of his car trunk,” the product has transformed into a worldwide nutrition phenomenon.