Activist Hedge Fund Manager Studied this Troubled Stock for a Year Before Finally Buying a Big Stake (CNBC)
A former J. P. Morgan Chase executive turned activist hedge fund investor has taken a 3.1 percent stake in Deutsche Bank as the beleaguered German lender works on a turnaround story. Douglas Braunstein, founder and managing partner of Hudson Executive Capital and J. P. Morgan’s former CFO, said in an interview that the firm has taken on the stake over the last few months. It is Hudson’s third financial services investment, after Comerica and CIT, and would make Hudson one of Deutsche Bank’s biggest shareholders, according to FactSet. The buy-out firm Cerberus Capital took a similar sized stake last year.
Activist Investor Icahn Sues Dell Over IPO Plans (Reuters)
(Reuters) – Activist investor Carl Icahn sued here Dell Technologies on Thursday, alleging that the computer maker did not disclose financial information related to its plans to go public by buying back its tracking stock (DVMT.N). Icahn, who owns 9.3 percent of Dell, called the proposed deal a “conflicted transaction that benefits the controlling stockholders, at the expense of the DVMT stockholders”.
Dan Loeb’s Third Point Funds Slump in October as Markets Tumble (Bloomberg)
Dan Loeb’s Third Point posted losses in its funds last month, joining an array of firms that struggled in October’s market rout. The Third Point Offshore Fund dropped 6.9 percent last month, bringing its loss this year to 6.3 percent, according to an investor letter seen by Bloomberg News. The firm’s Third Point Partners LP fund also fell by a similar magnitude, bringing its loss for the year to 5.9 percent.
Jana Partners Lost 6.3 percent in October When Stocks Tumbled (Reuters)
BOSTON (Reuters) – Activist hedge fund Jana Partners told clients in a performance update that it lost 6.3 percent last month when stocks tumbled but that it remains in the black for the year to date. Barry Rosenstein’s Jana Partners fund, known for posting double digit returns for years, is now up 2.4 percent for the year, according to and update which was seen by Reuters. It is trailing the Standard & Poor’s 500 index 3 percent gain for the year. Investors are bracing for a slew of poor hedge fund returns in October when the S&P dropped 6.9 percent.
Three Bays Capital Said Planning to Return Funds, Close Up Shop (Bloomberg)
Hedge fund Three Bays Capital reportedly plans to return capital to investors on Dec. 1 and close after years of weak performance. Bloomberg’s Jason Kelly reports on “Bloomberg Daybreak: Americas.” (Source: Bloomberg)
Barrick’s Randgold Acquisition May Spur More Gold M&A (Bloomberg)
Gold miners earned the ire of investors including billionaire hedge-fund manager John Paulson for entering into bad deals that destroyed shareholder value in the past. Shareholders of the two companies announcing a merger Monday signaled they think this time may be different. Barrick Gold Corp. Executive Chairman John Thornton said his company isn’t paying a premium under its agreement to buy Randgold Resources Ltd. The decision came after the company has been criticized for its “undisciplined growth and poor returns” in the past.