In Awful Year for Hedge Funds, Scaramucci’s SkyBridge Made Money (Bloomberg)
As disastrous as Anthony Scaramucci’s brief turn as White House communications director was, his rebooted career in hedge funds is going much better. SkyBridge Capital, the investment firm Scaramucci founded and now runs again, made money in one of the worst years ever for the hedge fund industry. Unaudited returns for 2018 were 3.6 percent and 4.5 percent after fees in SkyBridge’s two funds, Scaramucci said in a phone interview.
Hudson’s Bay Chairman’s Firm to Buy Ontario Pension Fund Stake in Retailer (Reuters)
(Reuters) – An entity controlled by Hudson’s Bay Co Chairman Richard Baker will buy the stake owned by a unit of Ontario Teachers’ Pension Plan Board in the Canadian retailer, according to L&T B Cayman Inc, a top shareholder in Hudson’s Bay and a joint buyer. The purchase of about 18 million shares at C$9.45 each by Baker’s entity Rupert of the Rhine LLC represents a premium of 28.6 percent to HBC’s Thursday close, L&T B Cayman said on Thursday.
Brevan Howard’s Payouts to Members Shrink 40% as Fee Income Dips (Bloomberg)
Brevan Howard Asset Management LLP’s U.K. unit paid its members an average of 2.3 million pounds ($2.9 million) in the 12 months through March, according to Bloomberg calculations based on a filing to Companies House. That’s a drop of about 40 percent from a year earlier as fee income declined.
Daniel Loeb’s Third Point Hedge Fund Lost 11% Last Year (BizJournals.com)
Activist investor Daniel Loeb and his Third Point hedge fund firm didn’t enjoy a stellar 2018, according to a report. Loeb was in the headlines last year when he battled the Campbell Soup Co. over the New Jersey soup company’s (NYSE: CPB) board makeup. Loeb and Third Point owned about 7 percent of Campbell’s at the time. The battle ended in November, the Philadelphia Business Journal reported, when Campbell said it would increase the number of seats in its board of directors from 12 to 14, adding two of the hedge fund’s five proposed board candidates.
Billionaire Pays the Price for His General Electric Ambush (Bloomberg)
For activist hedge funds like Elliott Management Corp, wading into a takeover situation and compelling the buyer to pay more is bread-and-butter stuff. The controversial tactic even has a silly name: “Bumpitrage” (translation: Buying a stake in a bid target to bump up the deal price, get it?) It’s especially common in Germany, where minority shareholder rights are sacrosanct.