CEO’s Plan to Save Sears Would Hand His Hedge Fund $1 Billion (Bloomberg)
Eddie Lampert’s hedge fund has a new plan for cutting Sears debt. The main beneficiary would once again be Eddie Lampert’s hedge fund. Lampert, Sears Holdings Corp.’s chief executive officer, called this week for the underperforming retailer to stanch the bleeding by paying off certain loans — many of them owned by his hedge fund — while swapping other debt for notes that convert to equity. This comes at a time when Sears stock is hovering just above $1 a share, an 87 percent dive in the past year.
Singer’s Hedge Fund Gets a Surprising Helping Hand (Bloomberg)
The resignation of a company’s chief executive and chairman in quick succession usually heralds a period of corporate inaction. Even if replacements can be found swiftly, they need time to piece together a new strategy. The leadership vacuum at German industrial giant Thyssenkrupp AG is apparently no barrier to radical surgery, though. On Thursday the company confirmed a report from Bloomberg News’s Eyk Henning that it plans to separate its capital goods and steel operations to create two more focused, listed companies.
Companies are Sticking to a Practice that Warren Buffett and other Business Titans Warn is Damaging the Economy (Business Insider)
Warren Buffett has long said short-termism is bad for companies, but many didn’t seem to concur last year. Companies on the S&P 500 issued quarterly earnings guidance 444 times in 2017, the most since 2008, according to a report by S&P Global Market Intelligence released on Thursday. Forward guidance remains a cornerstone of the quarterly ritual of earnings reporting. Unlike their results, public companies are not required by law to give investors hard estimates for the future. But many companies do so anyway to give analysts and shareholders a sense of their outlook and sometimes by popular demand.
This $8B hedge fund startup is growing at Park Avenue Tower (TheRealDeal.com)
Hedge fund ExodusPoint Capital is expanding by almost 18,000 square feet at the 36-story Park Avenue Tower. The company will grow by 17,800 square feet, which will bring its total footprint to about 35,700 square feet, according to Commercial Observer. It will occupy the entire ninth and 10th floors of the 65 East 55th Street building, run by landlord EQ Office. The hedge fund launched in June with a reported $8 billion in capital and has occupied the building’s ninth floor since March.