Why Bill Ackman Will Salvage Pershing Square (Forbes)
Pershing Square Capital Management is one of the world’s largest publicly traded hedge funds, whose founder and chief executive, Bill Ackman needs no introduction. Ackman popularized contrarian activism in the early 2000s with landmark deals involving Wendy’s and Barnes & Noble. In April 2018, after a multi-year losing streak and several high profile blunders, Pershing Square announced a $300M tender offer which closed in early May 2018. SumZero sat down with Garrett Arms, Portfolio Manager at Knoxville-based Moon Capital Management about his long call on Pershing Square, the tender offer results, the resilience of Bill Ackman, and his value investing philosophy.
Tepper Posts 7% Hedge Fund Gain While Tackling Football Deal (Bloomberg)
David Tepper, who won the bidding contest for the Carolina Panthers this week, has been beating most of his hedge fund rivals too. His Appaloosa Management returned about 7 percent this year through April for clients paying a 2 percent management fee and 25 percent of profits, according to a person familiar with the matter. That tops the slight gain of the Hedge Fund Research multistrategy index and the broader stock market, which fell.
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RANKED: The 10 Biggest Hedge Funds in the US (Business Insider)
Hedge funds are the wild cards of financial markets. Some sharply criticize their activities, but others say they bring valuable diversity to markets and act as shock absorbers against volatility. The sector saw it’s best results since 2013 last year, producing an 8.5% return, up from 5.4% in 2016. But despite the stronger outlook, back-to-back losses in recent months caused by trade disputes, tech sector setbacks, and interest-rate hikes by the Federal Reserve have dampened returns. Even in the midst of these adverse conditions hedge funds are still a formidable power, wielding billions of dollars in assets and significant influence in financial markets. Here’s a list of the biggest funds in the US, created by data and research provider HFM Absoloute Return and ranked by assets under management (AUM)…
Three Hedge Fund Managers Face Down Wall Street’s Dollar Doom (Bloomberg)
Three hedge fund managers are going head-to-head with Wall Street’s top strategists over the fate of the dollar, wagering the currency’s best run in three years is far from over. IPM Informed Portfolio Management, Millennium Global Investments and Rhicon Currency Management stand at odds with a growing chorus of sell-side analysts recommending investors avoid the greenback after a five-week, 4.4 percent rally.
