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.
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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.
Biotech Insider Stock Sales: Peer Benchmarks And Guidelines (Forbes)
Over the past six years, the biotech sector has experienced an incredible run of IPOs, reflecting the longest and largest “open window” for new offerings. Much has been written about post-IPO performance here and elsewhere, but there’s been little discussion about equity sales by executive teams following these IPOs. In many ways, it’s a taboo subject, raising questions like “does a CEO who sells some of their stock signal a lack of conviction”? Insider sales/purchases are commonly tracked by public market investors seeking to understand internal sentiment changes.
Wednesday 2/6 Insider Buying Report: WETF, TUP (Nasdaq.com)
Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned cash to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys. At WisdomTree Investments (WETF), a filing with the SEC revealed that on Monday, Chief Administrative Officer Peter M. Ziemba bought 16,000 shares of WETF, at a cost of $6.07 each, for a total investment of $97,082.
Automatic Data Processing (NASDAQ:ADP) Insider Trading Activity – VP Sold 6,035 shares of Stock (Market Exclusive)
Insider Trading Activity For Automatic Data Processing (NASDAQ:ADP): Douglas W Politi , VP of Automatic Data Processing (NASDAQ:ADP) reportedly Sold 6,035 shares of the company’s stock at an average price of 145.01 for a total transaction amount of $875,135.35 SEC Form. Insider Trading History For Automatic Data Processing (NASDAQ:ADP): On 3/14/2013 Michael C Eberhard, VP, sold 6,756 with an average share price of $65.00 per share and the total transaction amounting to $439,140.00. On 5/9/2013 Edward B Flynn III, VP, sold 3,000 with an average share price of $69.98 per share and the total transaction amounting to $209,940.00.
United States: Past, Present, And Future: Insider Trading’s Personal Benefit Test After Martoma, Gupta, And Other Recent Cases (Mondaq.com)
Introduction: Late last week, former SAC Capital Advisors portfolio manager Mathew Martoma petitioned the Supreme Court to review his 2014 conviction for insider trading. Martoma’s conviction stems from activity in 2008 when he paid a doctor from the University of Michigan for tips about clinical trials of a potential Alzheimer’s medication. Before the results of the clinical trial were announced, Martoma caused SAC Capital to enter into substantial short-sale and options trades that resulted in approximately $275 million in gains and losses avoided. Martoma’s appeal is the latest in a series of insider trading cases, mostly in the Second Circuit, attempting to provide guidance on what type of “personal benefit” an insider or tipper must receive in order for there to have been a breach of duty.
Waters Co. (NYSE:WAT) Insider Trading Activity – SVP Sold 10,800 shares of Stock (Market Exclusive)
Insider Trading Activity For Waters Co. (NYSE:WAT): Elizabeth B Rae , SVP of Waters Co. (NYSE:WAT) reportedly Sold 10,800 shares of the company’s stock at an average price of 232.35 for a total transaction amount of $2,509,380.00 SEC Form. Insider Trading History For Waters Co. (NYSE:WAT): On 5/15/2013 Michael J Berendt, Director, sold 4,000 with an average share price of $98.79 per share and the total transaction amounting to $395,160.00. On 5/28/2013 Arthur G Caputo, EVP, sold 100,000 with an average share price of $99.29 per share and the total transaction amounting to $9,929,000.00.
