Hedge Fund Manager David Einhorn Unveils Two New Trades at the Sohn Conference (CNBC)
Hedge fund manager David Einhorn discussed two positions his firm has taken, both relating to leasing in the transportation industry. The Greenlight Capital founder and president said his fund has a long position on AerBus and a short on GATX. AerCap is involved in airplane leasing, while GATX is a leader in rail cars. Speaking favorably of both industries, he said the airline sector has some advantages over rail that make AerCap the better choice over GATX, which he thinks could be overvalued.
Hedge Fund Marcato Opposes Acreage’s Sale to Cannabis Producer Canopy (Reuters)
(Reuters) – Hedge fund Marcato Capital Management said on Monday it opposed marijuana company Acreage Holdings Inc’s $3.4 billion sale to rival Canopy Growth Corp, arguing Acreage was too hasty in agreeing to a deal at too low a price. Marcato, which owns 2.7 percent of Acreage, wrote to the company’s board of directors to argue that the proposed takeover, which was agreed to last month and will be voted on by shareholders next month, is “lopsided in Canopy’s favor.”
Activist Reveals Carrizo Stake and Wants Driller to Consider Sale (Bloomberg)
Activist investor Lion Point Capital has built a position in Carrizo Oil & Gas Inc. and wants the driller to explore a sale or merger with another Permian explorer to gain scale. The New York-based hedge fund has an economic exposure to about 6 percent of Carrizo and believes the company is undervalued, according to a filing Monday. Lion Point, which was founded by a former Elliott Management Corp. executive, has held discussions with management about its views.
Bridgewater Co-CEO Eileen Murray Weighs Leaving World’s Largest Hedge Fund (The Wall Street Journal)
Bridgewater Associates co-Chief Executive Officer Eileen Murray has held repeated conversations inside and outside of the firm about leaving the world’s largest hedge fund, according to people familiar with the matter. Ms. Murray was recently contacted by representatives of Wells Fargo & Co. about the bank’s open CEO role, people familiar with the matter said. Wells Fargo representatives also called people close to Ms. Murray as part of that process. Ms. Murray subsequently tipped off the job possibility to others at Bridgewater.
Platinum Co-Founder’s ‘Rage’ at Lawyer May Land Him in Jail (Bloomberg)
U.S. prosecutors asked a judge to revoke Platinum Partners LLP co-founder Mark Nordlicht’s bail, saying he “forcibly intimidated” a government attorney last week during a break in his fraud trial. Nordlicht and two other former executives of the defunct hedge fund are accused of inflating the value of Platinum’s largest assets and using loans and money from new investors to pay off old ones, while falsely claiming to regulators the firm had about $1.7 billion in assets under management.
Sector Asset Management Becomes PRI Signatory (HedgeNordic.com)
Stockholm (HedgeNordic) – Sector Asset Management, a Norwegian independent hedge fund platform, has become a signatory to the United Nations-supported Principles for Responsible Investment (PRI) and thereby confirmed their commitment to responsible investment. Sector Asset Management’s business model involves partnering with independent investment teams by supporting them with operational, legal and compliance infrastructure. Three members of the Nordic Hedge Index – Incentive Active Value Fund, Sector Healthcare Fund, and Sector Zen Fund – currently operate under the Sector umbrella.
Inside Berkshire Hathaway’s American Dream (Forbes)
Like tens of thousands of others, I made the pilgrimage this past weekend to Omaha, “somewhere in middle America” as Adam Duritz once sang. The country’s 40th-largest city was about to be inundated by fifty thousand Berkshire Hathaway BRK.B +0% investors, here to give chairman Warren Buffett and vice chairman Charlie Munger the rockstar treatment at the Annual Shareholder Meeting.