Hedge Fund News: Whitney Tilson, AeroVironment, Inc. (AVAV), Caterpillar Inc. (CAT)

Page 1 of 2

Editor’s Note: Related tickers: AeroVironment, Inc. (NASDAQ:AVAV), Caterpillar Inc. (NYSE:CAT), SandRidge Energy Inc. (NYSE:SD), H.J. Heinz Company (NYSE:HNZ), Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Dell Inc. (NASDAQ:DELL), Philip Morris International Inc. (NYSE:PM)

T2 PARTNERSCollege sex pushes hedgie dad’s buttons: ‘If a guy tells you to get down on your knees – bite it!’ (NYPost)
Outspoken hedge-fund manager Whitney Tilson usually sticks to the stock markets — not sex tips. Prompted by a recent New York Times story about the campus “hookup” culture at the University of Pennsylvania, the founder of Kase Capital caused a stir yesterday with a widely circulated e-mail and blog posting offering some advice to his three daughters should a guy ever tell them to “get down on your knees.” While Tilson’s suggestions for escaping the situation started out tame (“Walk away”) it quickly escalated with his fifth and final item: “Bite it!” In all cases, Tilson — who is active in education-reform circles — said he would ask that his girls “come home and tell me his name so I can buy my first gun and … well, you get the idea!”

Hedge Fund Takes Interest in AeroVironment (LABusinessJournal)
AeroVironment, Inc. (NASDAQ:AVAV) shares jumped 14 percent Wednesday on news that an activist Newport Beach hedge fund had acquired a 5.1 percent stake in the Monrovia maker of unmanned drone aircraft and electric-car charging stations. …Engaged said in a press release that AeroVironment, Inc. (NASDAQ:AVAV)’s share price could be boosted with better corporate governance and financial disclosures, a stronger capital structure and renewed focus on capital allocation. “In our view, concerns over an excess of cash in the capital structure, a lack of granularity and specificity with respect to its growth plans, and uncertainty surrounding its heavy exposure to the defense budget are all addressable issues,” Glenn Welling, Engaged’s principal and chief investment officer, said in a statement.

Jim Chanos: Why I’m Short Caterpillar (Forbes)
China, the end of the commodities supercycle and accounting issues. In short, that’s why hedge fund manager James Chanos is shorting Caterpillar Inc. (NYSE:CAT) -2.38%. …Caterpillar Inc. (NYSE:CAT) has 30% of its revenue and half of its operating profits tied to global mining capital expenditures, Chanos says, and the hockey stick growth of that spending over the last decade-plus is waning. “One third of global mining cap-ex is equipment, and that lands you in Peoria, Ill., at the doorstep of Caterpillar Inc. (NYSE:CAT),” the hedge fund manager said.

Leon Cooperman Likes SandRidge, Qualicorp And Fat Yields In Financials (Forbes)
A year ago Leon Cooperman said the stock market was the best house in the financial neighborhood. He still feels that way, but has dialed back his expectations thanks to a strong run for the S&P 500. …Cooperman described himself as “less ebullient, but constructive” before firing out a fresh list of 10 stocks he thinks will do well, including SandRidge Energy Inc. (NYSE:SD). …He also likes Brazilian healthcare outfit Qualicorp, another stock he thinks could double, if expected earnings growth of 20% comes through. Cooperman notes that management has a 30% stake in the business and 3G, the private equity firm that teamed up with Warren Buffett to buy H.J. Heinz Company (NYSE:HNZ) earlier this year, has a seat on the boar and “keen interest,” in seeing the company do well.

Bruised FX hedge funds tiptoe back into bets on weaker yen (Reuters)
Hit by a whipsawing yen in the last two months, many FX hedge funds are still determined to bet the Bank of Japan will succeed in weakening the currency over time while the dollar climbs as the Federal Reserve withdraws its stimulus. The Fed’s first hints in May that it may start to pull back from its $85 billion dollars-per-month programme led to a rebound in the safe-haven yen as investors stampeded out of emerging markets and commodity currencies. Its more recent indications that it will stick with its stimulus until later this year have eased some of the market’s qualms, however, and some hedge funds are tiptoeing back into bets against the yen.

Where is the Sweet Spot for Hedge Fund AUM? (ai-CIO)
Investors who plumped for a middle-sized, equity-focussed hedge fund stood a better chance of outperformance last year than those opting for larger or smaller options, research has found. US-based, equity-focussed hedge funds with between $500 million and $3 billion performed the best out of their peer group in 2012, partly due to their size, a survey by Tabb Group today has shown. “Medium-sized hedge funds fared the best in 2012, with 79% reporting positive performance and only 14% experiencing negative performance,” the survey said. “Small firms reported the largest percentage of negative performance, but this represented an improvement over 2011.

Paulson says his funds’ fortunes are up; bullish on buying homes (Reuters)
Hedge fund billionaire John Paulson wants the world to know he is having a good year. After two years of losses in his once enormous Advantage Funds, Paulson has something to brag about in 2013 with his Recovery fund up 25.22 percent and his Paulson Enhanced fund up 15.63 percent. The Paulson Credit Opportunities fund is up 11.2 percent, even after some losses in June. “We are having a very strong year,” Paulson told an audience of investors and hedge fund managers at the CNBC Institutional Investor Delivering Alpha Conference on Wednesday.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!