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Hedge Fund and Insider Trading News: Bill Miller, Warren Buffett, Coatue Management, Elliott Management, Nucor Corporation (NUE), Tradeweb Markets Inc (TW), and More

Hedge Funds Pocket $1.7 billion as Wirecard Goes Bust (Reuters)
LONDON (Reuters) – Coatue Management and nine other hedge funds likely earned more than 1.5 billion euros ($1.7 billion) this week on bets against Wirecard after the German payments firm collapsed on Thursday. Wirecard shares crashed to 2.5 euros on Thursday from 104.5 euros a week ago, before the company revealed a $2.1 billion hole in its accounts. That has landed Coatue Management, the hedge fund with the largest short position, a 271 million euro profit on paper, according to Reuters calculations.

Why Make a Needless Enemy Out of Paul Singer’s Elliott? (Bloomberg)
Activist-in-chief Elliott Management Corp. sometimes nudges companies to agree with its strategic ideas in private. The target firm then announces a new plan or some stretching targets and gets an endorsement from the feared hedge fund at the same time, sparing itself a public battle. Think of recent shifts by enterprise software group SAP SE and life-sciences group Bayer AG that met with simultaneous applause from Elliott. Dutch insurer NN Group NV, with a fresh chief executive officer, has chosen confrontation.

Bill Miller is Still a Bull on Bitcoin (Seeking Alpha)
Bill Miller, the former Legg Mason star, is optimistic about bitcoin’s future, he said on a webcast sponsored by Digital Galaxy. Miller, who now runs Miller Value Partners, hasn’t sold any of his bitcoin; he first got into the digital currency when it was at ~$200 and after the Mt. Gox collapse, he snapped up more, buying it at levels up to $500 with his average cost for is bitcoin investment at ~$300. Bitcoin is recently trading ~$9,280. That’s not to say it’s without volatility; early this month it fell to ~$600M from over $10K for no apparent reason.

ValueAct Chairman Jeffrey Ubben Retires, Looks to Start New Firm (Pensions&Investments)
Jeffrey Ubben, co-founder of ValueAct Capital, retired as chairman to launch Inclusive Capital Partners, the company said in a news release. He will assume the role of chairman emeritus at ValueAct; the company has not yet disclosed who will replace him as chairman. “We started ValueAct Capital 20 years ago with an untested investment strategy — that a minority investor in the public markets could positively impact a company’s trajectory from inside the company board room,” Mr. Ubben said in the release. “All these many years later, it’s the right time to depart.”

Berkshire Hathaway Might Continue To Underperform For Longer Than You Think (Seeking Alpha)
I am saying “no” to investing in Berkshire Hathaway, Inc. (BRK.A) (BRK.B). In case you felt the author of this article is anti-Buffett by reading the title, let me clear your doubts by confirming that I believe Warren Buffett is the greatest investor the world has ever seen. What’s more, I believe he would remain the same even if Berkshire Hathaway, Inc. was to underperform the broad market in the next decade. But, at the same time, I am bold enough to believe that the presence of Buffett at the helm of Berkshire is not an investment thesis. There’s a lot of chatter about Buffett missing the rally, but I’m more worried about the conglomerate’s asset allocation strategy. In particular, I believe the high exposure to the banking sector will prove to be a drag on the performance of Berkshire Hathaway stock in the next few years for reasons discussed in this analysis. In addition, I will discuss a few other macro developments that could limit Berkshire’s ability to beat the market.

HF Capital is Moving Fast: In and Out (Hedge Nordic)
Stockholm (HedgeNordic) – After pulling $32.7 billion out of hedge funds in the first four months of 2020, investors added an estimated $1.7 billion to the global hedge fund industry in May, according to eVestment. The industry’s assets under management increased to $3.05 trillion due to performance gains. Although last month’s figure of net flows was insignificant relative to the industry’s assets under management, the overall volume of asset movement – the sum of the absolute values of both inflows and outflows divided by the prior month’s reported assets – remained elevated.

Hedge Funds Face Sweeping Changes to Remote Working and Office Space, as Firms Review Footprint (Hedge Week)
Most US hedge funds and other alternative managers expect to return to work before year-end, but a majority predict sweeping changes to work-from-home policies and office layouts, with close to a third of New York-based managers mulling a reduction in office space, a deep-dive industry study by Seward & Kissel has found. The US law firm’s Alternative Investment Manager Covid-19 Survey examined the potential long-term effects of the coronavirus pandemic on the alternative investment industry’s business functions, quizzing a range of CFOs, COOs, CCOs and GCs from hedge funds, private equity and other alternative investment managers.

Tradeweb Markets Inc (TW) CEO Lee Olesky Sold $7.6 million of Shares (Guru Focus)
CEO of Tradeweb Markets Inc., Lee Olesky, sold 122,338 shares of TW on 06/23/2020 at an average price of $62.44 a share. The total sale was $7.6 million. Tradeweb Markets Inc has a market cap of $13.75 billion; its shares were traded at around $60.85 with a P/E ratio of 77.03 and P/S ratio of 11.96. The dividend yield of Tradeweb Markets Inc stocks is 0.53%.

Thursday 6/25 Insider Buying Report: VTOL, VST (Nasdaq.com)
At Bristow Group, a filing with the SEC revealed that on Tuesday, Director George Mark Mickelson purchased 14,000 shares of VTOL, for a cost of $14.77 each, for a total investment of $206,720. Bargain hunters are able to bag VTOL even cheaper than Mickelson did, with the stock changing hands as low as $13.84 in trading on Thursday which is 6.3% below Mickelson’s purchase price. Bristow Group is trading up about 0.9% on the day Thursday. This buy marks the first one filed by Mickelson in the past twelve months. And at Vistra Energy, there was insider buying on Monday, by Director Arcilia Acosta who purchased 10,000 shares for a cost of $19.58 each, for a total investment of $195,800. This purchase marks the first one filed by Acosta in the past year. Vistra Energy is trading off about 0.4% on the day Thursday. Bargain hunters have the opportunity to grab VST at a price even lower than Acosta did, with the stock changing hands as low as $18.38 in trading on Thursday which is 6.2% under Acosta’s purchase price.

The EVP of Nucor (NYSE: NUE) is Selling Shares (Analyst Ratings)
Today, the EVP of Nucor (NUE), Raymond Napolitan, sold shares of NUE for $728.1K. In addition to Raymond Napolitan, one other NUE executive reported Sell trades in the last month.

Skyworks Solutions Inc (SWKS) President and CEO Liam Griffin Sold $1.6 million of Shares (Guru Focus)
President and CEO of Skyworks Solutions Inc., Liam Griffin, sold 12,500 shares of SWKS on 06/22/2020 at an average price of $126.36 a share. The total sale was $1.6 million. Skyworks Solutions Inc is engaged in producing semiconductors for wireless handsets that are used to enable wireless connectivity. Its products include power amplifiers, filters, and integrated front-end modules.

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