Billionaire Eddie Lampert to Elizabeth Warren and Alexandria Ocasio-Cortez: Severance to Workers has been Paid. Singling Out Sears is ‘Unfair’ (CNBC)
Former Sears Chairman and CEO Eddie Lampert delivered a letter Thursday to presidential candidate Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez saying accusations that he has not paid severance to Sears employees laid off in the wake of the retailer’s bankruptcy are based on “false” reports. The employees in question have been paid, he says, according to a copy of the letter obtained by CNBC.
Global Alternative Manager EJF Capital Joins Artivest Platform (Hedge Week)
Global alternative asset manager EJF Capital has joined the Artivest platform, making its opportunity zone solution available to financial advisors and high-net-worth investors. EJF Capital focuses on regulatory event-driven investment themes. “We are excited to partner with Artivest to broaden the availability of our investment strategies to leading financial advisory firms and their high net worth clients,” says Neal Wilson, Co-founder and Chief Operating Officer of EJF Capital.
Barnes & Noble Investor Says Eetailer Worth More than Elliott’s Bid (Reuters)
(Reuters) – Barnes & Noble Inc investor Richard Schottenfeld said on Thursday the bookstore chain is worth more than Elliott Management’s recent offer and he may engage in discussions with the company’s board regarding its sale. Barnes & Noble, one of the leading bookstores in the United States until online retailers such as Amazon.com Inc took over, was offered a take-private deal for $475.8 million by Elliott Management earlier this month.
Jana Builds Stake in Callaway and Plans to Push for Sale (Bloomberg)
Activist investor Jana Partners has built a stake in Callaway Golf Co. and is urging the sporting goods company to launch a strategic review, including exploring a potential sale. The New York-based hedge fund run by Barry Rosenstein said in a regulatory filing Thursday that it bought 9.5% of Callaway Golf because it believes the shares are undervalued. Jana plans to hold discussions with management about ways to improve its performance, including selling all or part of the company.
Nelson Peltz Needs Help To Tackle the Plumbing (The Wall Street Journal)
Ever since hands-on investor Nelson Peltz said he was combing the U.K.’s blue chip FTSE 100 index for his next target, it has been something of a parlor game to guess where he might show up. Few thought to check the restroom. Trian Partners, founded by investor trio Nelson Peltz, Ed Garden and Peter May, said Thursday that it now owns 6% of London-listed plumbing distributor Ferguson—a stake worth $935 million. The move, which comes several months after Trian set up a Guernsey-based vehicle to invest in a U.K. company, sent…
Hedge Fund Manager Willing to Play ‘Idiot’ Shuns Trendy Stocks (Bloomberg)
Defensive investors are stoking fashionable stocks at a rate rarely seen over the past three decades — all while snubbing the cheapest shares. A hedge-fund manager besting most of his peers is joining a chorus of Wall Street voices warning something has to give. Federico Riggio, who runs the 318 million euro ($360 million) Kairos Pegasus Fund SA, is sticking with Europe’s scorned value shares while warning that so-called momentum equities are getting dangerously overheated.
Hedge Funds Relatively Resilient in May Thanks to Their Defensive Stance (Opalesque.com)
The recent escalation in trade wars took a heavy toll on risk assets in May and the Tech sector underperformed the U.S. equity market while Chinese stocks suffered a heavy blow, said Lyxor research report. Meanwhile, the bond market rally has proved unstoppable, especially as the Fed is considering rate cuts. In Germany, 10Y Bund yields reached record lows early June. Hedge funds were relatively resilient thanks to their defensive stance. Directional L/S Equity and Global Macro strategies underperformed in May, but the losses were largely contained.