Hedge Fund Manager David Einhorn’s Stumble May Mean a Value Investing Resurgence is Near (CNBC)
Billionaire hedge fund manager David Einhorn is in a rut. His Greenlight Capital fund fell 7.7 percent in June and is down nearly 19 percent for the first half of the year, according to a performance update seen by CNBC. At the same time, the S&P 500 is up 1.7 percent. The down-on-his-luck investor may take comfort in history, however. Fellow value-style champion Julian Robertson of Tiger Management had his own high-profile stumble during the momentum-driven tech stock surge of 1999 and 2000, a period that preceded a big shift back to value investing.
Activist Paulson Takes Bigger Slice of Britain’s Premier Foods (Reuters)
(Reuters) – Hedge fund Paulson & Co has tripled its stake in Britain’s Premier Foods Plc (PFD.L), making it the third largest shareholder in the company ahead of a crunch annual meeting next week. The meeting on July 18 could determine the fate of Gavin Darby, chief executive of the maker of Oxo cubes and Mr Kipling cakes. The hedge fund led by billionaire investor John Paulson said it held a stake of 6.08 percent in Premier Foods as of July 6, up from 1.99 percent disclosed earlier.
Steve Cohen’s Return to UK Hedge Fund Investing Faces Regulatory Hurdle (Verdict.co.uk)
Hedge fund manager Steve Cohen’s return to UK investing has faced a setback after the Financial Conduct Authority (FCA) blocked Cohen’s hedge fund Point72 Asset Management from accepting outside investor money in Britain. According to a report by The Financial Times, the move was taken as the FCA deemed Cohen as not “fit and proper”. Cohen was restricted from managing third-party funds for two years after his US-based hedge fund SAC Capital pleaded guilty to insider trading in 2013 and was fined $1.8bn. The ban expired in January this year, though Cohen never admitted any personal wrongdoing. He had since then been managing his money through Point72, which launched to outside investors in the US.
AC Milan in the Wind Again as Li Misses Interest Payment to Elliott Hedge Fund (InsideWorldFootball.com)
July 9 – AC Milan’s Chinese owner Yonghong Li has missed the deadline to repay €32 million of interest on the debt to US hedge fund Elliott Management which provided an estimated €335 million of the €740 million Li used to buy the club. Under the terms of the loan, the missed payment means that Elliott could take control of the club which in turn would likely open up the possibility of a sale to new US investors. Li has already turned down approaches from the Ricketts family, which owns the Chicago Cubs baseball team, and Rocco Commisso, an Italian-American cable television entrepreneur who owns the New York Cosmos.