Hedge Fund and Insider Trading News: Dinakar Singh, Dan Niles, Steve Cohen, Warren Buffett, TCI Fund Management, CarMax, Inc (KMX), Constellation Brands, Inc. (STZ), and More

Activist Fund TCI Lodges Complaint Against Italy with European Commission Over Atlantia (Reuters)
LONDON/ROME (Reuters) – Activist hedge fund TCI Fund Management said it has submitted a complaint to the European Commission over “illegitimate expropriation” by the Italian government of Atlantia’s motorways unit Autostrade per l’Italia. TCI, an investor in Atlantia, said in its complaint that Italy’s order that Atlantia sell down its stake in Autostrade “seriously threatened the fundamental principles of the EU Capital Market Union”.

The Head of Professional Development at Steve Cohen’s Point72 Lays Out How to Climb from Fresh College Grad to Portfolio Manager at the $16.3 Billion Hedge Fund Firm (Business Insider)
Going from fresh-out-of-college, brand-spanking-new analyst to running an investment team as a portfolio manager at Steve Cohen‘s Point72 isn’t a linear path with obvious checkpoints. That’s something Jaimi Goodfriend, the firm’s head of investment professional development, stressed in a conversation with Business Insider — there’s not some plug-and-play plan that magically turns analysts into portfolio managers in a set number of years.

Warren Buffett Dumped the ‘Big 4’ Airlines in April. Their Earnings Show What He was Worried About. (Business Insider)
Warren Buffett sold his stakes in the “big four” US airlines in April because he anticipated fewer passengers, bigger debt loads, heavy losses, and other headaches as a result of the coronavirus pandemic. American Airlines, Delta Air Lines, United Airlines, and Southwest Airlines reported their second-quarter earnings this month. The figures suggest the famed investor and Berkshire Hathaway CEO was right to worry.

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Dinakar Singh Says Hedge Funds Need to Stop Trading So Much (Bloomberg)
Dinakar Singh has a simple explanation for why hedge funds keep trailing the stock market: They trade too often. Instead of sticking with high-conviction bets, managers have become prisoners to the short term. If a position doesn’t make money fast enough or loses too much too soon, they close it out. “There are plenty of very, very intelligent people up and down Wall Street working at funds,” Singh, the founder and co-chief executive officer of Axon Capital, said in a “Bloomberg Front Row” interview. “The problem isn’t that their brains somehow shrunk, the problem is their risk tolerance shrunk.”

Dan Niles Says He Shifted His Short Positions to Tech Stocks and Away from Reopening Plays (CNBC)
Hedge fund manager Dan Niles said Thursday that he had shifted away from shorting stocks tied to the reopening of the economy in recent weeks and was betting against some of the top-performing tech stocks. Niles, a founding partner of AlphaOne Capital Partners, said on “Closing Bell” that the valuations for some tech stocks has gone “too far, too fast”.

US hedge fund, SBI MF get nod to raise stake in IndusInd Bank, CSB Bank (VCCircle)
The Reserve Bank of India has allowed two shareholders of IndusInd Bank and CSB Bank to increase their individual stakes to 10% each. The banking regulator allowed State Bank of India’s (SBI) mutual fund arm to double its stake in Fairfax-controlled CSB Bank (formerly Catholic Syrian Bank). This approval will be valid for one year until July 21, 2021, CSB Bank said in a stock-exchange filing.

Hedge Fund Lakewood Is Shorting One of Canada’s Top Stocks (Bloomberg)
Ballard Power Systems Inc., the second-best performing stock in Canada this year, is a new short at Lakewood Capital, the firm said in its quarterly letter, calling it a “consistently loss-making and cash-burning Canadian company.” Shares of the Vancouver-based hydrogen fuel cell maker have risen 139% this year amid burgeoning speculation that wide-scale adoption of hydrogen fuel cells may at long last be around the corner.