Dan Loeb Cuts DowDuPont Target as ‘Value Gap’ Lingers Into Split (Bloomberg)
Activist investor Dan Loeb is trimming his expectations for DowDuPont Inc. just as the chemical giant prepares to break itself into three companies. Last May, Loeb’s Third Point hedge fund said in a letter to investors that the pending split could propel DowDuPont to $92 a share, closing a “value gap” of almost 50 percent. Instead, the shares lost value, and a cooling global economy has tempered Loeb’s view. Third Point now sees $80 as a more realistic 12-month target on a sum-of-its-parts basis, according to a person familiar with matter. A representative for Third Point declined to comment.
Baupost’s Seth Klarman Hires Investment Chief to Manage Foundation’s Assets (The Wall Street Journal)
Billionaire investor Seth Klarman will no longer manage his family foundation’s money day-to-day, a move that is expected to give him more time to manage his $27 billion hedge-fund firm. Mr. Klarman of Baupost Group LLC appointed stockpicker David Berkowitz to manage the Klarman Family Foundation’s assets, according to people familiar with the matter. That investment chief post is housed within Mr. Klarman’s family office, KFO LLC. Mr. Klarman will retain discretion over investment decisions.
AQR Quants Gaze Into Crystal Ball, See ‘Soberingly Low’ Returns (Bloomberg)
If the wizards at AQR Capital Management LLC are right, on the current trajectory the next few years will be a struggle for investors seeking the kind of returns they enjoyed in the “rosier past.” The $196 billion quantitative hedge fund this week updated its assumptions for major asset classes, and at first glance the outlook has brightened somewhat.
New Offering Targets Argentina’s High Rates (Hedge Fund Alert)
DoubleBlue Capital is expanding its direct-lending business in Argentina. The New York firm, led by emerging-market consumer-finance veteran Tomas Arlia, aims to raise $500 million for a drawdown vehicle called DoubleBlue Argentina Specialty Finance Strategy. A first equity close is penciled in for the second quarter. DoubleBlue is marketing the vehicle as an opportunity for investors to gain exposure to some of the highest interest rates in the world, driven by an economic crisis in Argentina that saw the inflation rate hit an annualized 48% in November.
IPM completes transition from FundLogic with own Umbrella (HedgeNordic)
Stockholm (HedgeNordic) – Following Morgan Stanley´s decision to discontinue the FundLogic Alternatives umbrella last year, Informed Portfolio Management, IPM, has completed the transfer of its subfund to its own, Irish domiciled UCITS Umbrella. The IPM UCITS ICAV has retained the services of Northern Trust who remain as Custodian, Transfer Agent and Administrator. Davy Investment Fund Services Limited (DIFS) has been appointed as the external Management Company to manage the regulatory obligations on behalf of IPM UCITS ICAV.
Hedge Fund Takes on U.K. and Its Banks. Good Luck (Bloomberg)
New York-based Coltrane Asset Management wants to break up a restructuring that suits the British government just fine. A U.S. hedge fund is taking on the British government and major banks in protest at the pain inflicted on ordinary shareholders in the latest rescue of a troubled U.K. construction company. It is picking a tough battle, but its plan is far from doomed. The company in question, Interserve Plc, revealed outline details of a restructuring package designed to cut its excessive leverage. The group said in November it expected to end 2018 with net borrowings of about 650 million pounds ($843 million), about five times estimated Ebitda for the year.