Lone Pine Tells Clients Loss Stemmed from Sins of Omission (InstitutionalInvestorsAlpha)
Stephen Mandel Jr.‘s Lone Pine Capital, which lost between 1 percent and 3 percent in its funds in the first half, does not apologize or second-guess its decisions. Why should it? The Greenwich, Connecticut-based hedge fund, possibly the most successful Tiger Cub of them all, tells clients its mistakes this year “have largely been ones of omission, not commission.” The Greenwich, Connecticut-based hedge fund, possibly the most successful Tiger Cub of them all, tells clients its mistakes this year “have largely been ones of omission, not commission.”
Darden Offers Olive Branch Amidst Bruising Hedge Fund Battle (Finalternatives)
Having completed a deal that they so bitterly opposed, Darden Restaurants, Inc. (NYSE:DRI) yesterday moved to mollify the hedge funds seeking to take control of the company. Darden CEO Clarence Otis, the focus of some of the most virulent attacks by Starboard Value and Barington Capital Group, announced that he would step down as CEO by the end of the year. In addition, he will not stand for reelection to the board. Nor will two other current directors. Darden said it plans to nominate only nine director candidates for the 12-member board, ensuring that at least three of the candidates nominated by Starboard will be elected. In addition, the firm said lead independent director Charles Ledsinger would succeed Otis as chairman.
Hedge Fund Prosecution Specialist Mark Berger Joins NY Law Firm (HedgeCo)
The Chief of the Securities and Commodities Fraud Task Force and the prosecutor who took down Raj Rajaratnam, the billionaire head of the Galleon Group hedge fund, has joined NY law firm Ropes & Gray. Marc P. Berger, who helped lead the Southern District of New York’s high-profile crackdown on insider trading and numerous other corporate and financial fraud cases including hedge fund SAC Capital, is currently Chief of the Securities and Commodities Fraud Task Force in the U.S. Attorney’s Office for the Southern District of New York. He will join Ropes & Gray’s Government Enforcement practice as a partner this month.
Hedge Fund, Founder Cleared In Madoff Feeder Fund Suit (Finalternatives)
A hedge fund founded by a former top Merrill Lynch executive isn’t on the hook for losses suffered by two clients in the Bernard Madoff scandal. A federal jury in Maine last week cleared Spring Mountain Capital and its founder, John Steffens, a former Merrill Lynch vice chairman. Steffens and his hedge fund were accused of encouraging Daniel Goldenson and his wife to invest with Madoff feeder fund manager J. Ezra Merkin, an investment that cost the couple up to $4.8 million.
Hedge Fund Lakewood Bets on Tetragon Greed as CLOs Jump (BusinessWeek)
Anthony Bozza is counting on the greed of a debt investor almost left for dead in the financial crisis to make money for his hedge fund. The founder of $2.8 billion Lakewood Capital Management LP has added to its stake in Tetragon Financial Group Ltd. (TFG), a publicly-traded company that owns the riskiest parts of leveraged loan funds, according to a letter sent to investors last week. The stock, which trades at about $10, or 40 percent below the value of its holdings, could double if the assets perform as expected and the company buys stock at discounted prices, the New York-based firm wrote.
Third Point LLC Briefly Reopening to More Money (WSJ)
Third Point LLC is briefly reopening to more money as founder Daniel Loeb sees more investment opportunities, according to people familiar with the matter. Third Point told investors last fall it would return a 10th of the $14 billion it managed to help ensure the firm could continue producing outsize returns. The New York hedge-fund firm, which now manages $15 billion after recent investment gains, plans to accept more money in its flagship fund through Oct. 1 to pursue specific investments, Mr. Loeb told investors in a quarterly conference call Tuesday…
Argentina on the edge of default (CNBC)
Hedge fund style reinsurer Till Capital seeking to buy Omega Insurance (Artemis)
Bermuda domiciled hedge fund style reinsurance and hybrid investment platform Till Capital Ltd., the parent company of reinsurer Resource Re, is seeking to buy Omega Insurance Holdings, Inc. (“Omega”), a Toronto-based insurance provider. Till Capital emerged after Resource Re Ltd., the first asset manager backed reinsurance firm to join the Multi-Strat Re Ltd., was acquired by Americas Bullion Royalty Corp. The newly combined group changed its name to Till Capital and set out on a mission to operate a reinsurance business with a diversified, hybrid investment strategy on the back-end.
Hedge Fund Turns a Nervous Eye Toward Mega Sun Storm (BusinessWeek)
First came the warning from the scientists, now a major hedge fund is reiterating the alert: A massive electromagnetic pulse could wipe out electric grids and cause “unimaginable consequences” for the global economy—and it’s time to start preparing. Two years ago the earth narrowly avoided a major plasma eruption from the sun in an event called a coronal mass ejection. NASA’s report released last week on the near catastrophe described the July 2012 solar emission as the largest event in at least 150 years, rivaling the 1859 “Carrington Event” solar storm that struck earth and disabled the then-new telegraph system.
Carl Icahn’s Family Dollar Payday Not Bad For Six Weeks Of Work (Finalternatives)
Less than two months after he began agitating for a sale, discount retailer Family Dollar obliged Carl Icahn, earning the billionaire another $174.3 million. Family Dollar accepted an $8.5 billion offer from rival Dollar Tree this week, a 23% premium to its Friday share price. And that was already higher than the stock traded for when Icahn bought up his 9.4% stake in the company. Icahn said he was “extremely pleased” with the deal. But the investor, who last week pushed a tie-up with another discount retailer, Dollar General, said he hoped a “handful of potential buyers” might yet net him an even more handsome profit.
Odey Opens Doors In Switzerland (Reuters)
Hedge fund Elliott Management told investors that it added to its stake in Juniper Networks, Inc. (NYSE:JNPR) last quarter and sees opportunities in real estate securities in Europe, but it said little about two positions making headlines — Argentina and EMC Corporation (NYSE:EMC). During the first half of 2014, the Elliott Associates portfolio gained 4.6 percent while the Elliott International Limited fund rose 4.1 percent, the $25 billion firm, which is run by investor Paul Singer, wrote in a letter dated July 28, a copy of which was obtained by Reuters on Tuesday.
Hedge Fund Investor Ramius Joins Up With State Street For Managed Futures Fund (HedgeCo)
$10.6 billion hedge fund investment platform and the global investment arm of Cowen Group, Inc., Ramius LLC., is seeking regulatory and shareholder approval to hire State Street Global Advisors, the asset management unit of State Street Corporation, to serve as sub-advisor to an new open-end mutual fund, the Ramius Trading Strategies Managed Futures Fund. State Street’s chairman, president and CEO, Joseph L. Hooley, reported the company’s Q2 financial results saying: “During the second quarter of 2014, we purchased approximately $410 million of our common stock and ended the second quarter with approximately $1.3 billion remaining under our March 2014 common stock purchase program authorizing the purchase of up to $1.7 billion of our common stock through March 31, 2015.
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