David Einhorn Sees Profit in Tesla Short With `Unending Losses’ (Bloomberg)
Hedge fund manager David Einhorn said he expects to make a profit off his short on Tesla Inc. as the electric-car maker faces a “stream of unending losses.” “We have a negative view toward Tesla,” Einhorn said Tuesday on a first-quarter earnings call for Greenlight Capital Re Ltd., the reinsurer tied to his hedge fund, Greenlight Capital. “We think the stock is overvalued and the risk reward on the long side is exceedingly poor. The company’s business has deteriorated remarkably.”
SAP CEO Welcomes ‘Fantastic’ Activist Shareholder Elliott (Reuters)
(Reuters) – SAP CEO Bill McDermott on Tuesday welcomed a $1.3 billion investment by activist investor Elliott Management, saying the U.S. hedge fund group was aligned with his goal of expanding margins by driving top-line growth. “They have been a fantastic investor. I am very proud they have chosen SAP,” McDermott told reporters on Tuesday at Sapphire Now, SAP’s annual U.S. user conference in Orlando, Florida.
Warren Buffett Needs More Sweethearts (The Wall Street Journal)
Berkshire Hathaway may be too big to fail, but it is also getting too big to succeed. Warren Buffett’s investment vehicle has a lean management structure, massive war chest and an iconic leader at the helm that puts it in a unique position when corporate America comes calling. The $10 billion he recently pledged to Occidental Petroleum for its purchase of rival Anadarko Petroleum shows Berkshire at its best. It was agreed upon over a weekend, Mr. Buffett explained to the investors in Omaha, Neb., on Saturday for his annual…
Hedge Fund Managers Present Their Best Ideas at Sohn (Opalesque.com)
Big name hedge fund managers gathered at the Sohn Investment Conference in New York to share their best ideas. Presenters this year offered a diverse set of opportunities from hotel chains to emerging markets. Here are the top calls. Longs: Lauren Taylor Wolfe, of Impactive Capital got things started with a long call on Wyndham Hotels. “There’s no hotel we’d rather own,” she said of the chain. Despite the upbeat sentiment, Wolfe is taking an activist stance on Wyndham. In her presentation, she listed several things the hotel could do to improve shareholder value and sustainability. Wolfe sees more than 50% upside for the stock and plans to be a long-term investor, pushing for changes at the hotel including an improved environmental record and greener operations.
Hedge Fund VGI Partners to Float on ASX, Raise for Listed Fund (AFR.com)
High profile Australian hedge fund VGI Partners is set to list on the Australian Securities Exchange in a deal valuing its three key stockpickers at about $300 million. Street Talk can reveal VGI will seek to raise $75 million in fresh funds for a $370 million market capitalisation, in a deal overseen by stockbroker Moelis and law firm MinterEllison. The deal would see VGI’s three shareholders – managing director Rob Luciano and partners Doug Tynan and Robert Poiner – retain an 80 per cent stake in the manager, which would be subject to a five year escrow.
1Sharpe Capital and Builders Capital Close Strategic Partnership to Fund $1billion+ of Loans (BusinessWire.com)
OAKLAND, Calif.–(BUSINESS WIRE)–1Sharpe Capital, a leading global asset manager, and Builders Capital, a prominent private construction lender headquartered in Seattle, have closed a long-term strategic partnership where 1Sharpe has entered into a multi-year agreement to purchase construction loans from Builders Capital. The partnership brings together Builders Capital’s regional construction lending expertise and 1Sharpe Capital’s strong balance sheet and structured credit expertise. “We are excited to be working with 1Sharpe, who worked diligently to structure a creative and comprehensive capital solution to facilitate construction lending in the North West,” said Curt Altig, CEO and co-founder of Builders Capital.
A rising hedge fund star is shorting the Australian wine company that owns popular brands Beringer and 19 Crimes (Business Insider)
Millennials are not killing the wine industry, but they certainly aren’t helping it. The largest generational cohort prefers liquor to wine and beer, and a growing percentage of millennials are choosing marijuana over alcohol, said Angela Aldrich, founder of Bayberry Capital Management, during her presentation at the Sohn Investment Conference on Monday.