Activist Investing Makes New Inroads as Gulf Shakes Off Taboos (Bloomberg Quint)
Activist investing can be a lonely slog in the Middle East. The hardball tactics deployed by Carl Icahn or Paul Singer’s Elliott Investment Management are all but unheard-of in a region where board decisions rarely meet dissent while shareholders work out their differences behind closed doors. But the Gulf’s listed firms, at a cumulative market value of nearly $3.5 trillion, may be the next frontier for activists pushing management to make strategic or operational changes, especially as competition for foreign capital intensifies within the region and more companies go public.
Black-and-White Shuts Down (Hedge Nordic)
Stockholm (HedgeNordic) – Black-and-White Capital, a Brummer & Partners-backed hedge fund firm founded and managed by Seth Wunder out of Los Angeles, California, is shutting down. Brummer Multi-Strategy (BMS), the multi-strategy fund investing in the single-strategy hedge funds under the umbrella of Brummer & Partners, will redeem its entire investment in Black-and-White’s tech-focused long/short equity strategy.
Activist Hedge Fund Starboard Has Big Stake in Huntsman (The Wall Street Journal)
Activist hedge fund Starboard Value LP has a more-than-8% stake in Huntsman Corp. and plans to agitate for change at the chemicals producer, according to people familiar with the matter. Huntsman has a market value of roughly $6.3 billion, making Starboard’s stake worth around $500 million or more.
Al Gore Makes Appropriately Hedged Bet on UK Power (Reuters)
LONDON, Sept 28 (Reuters Breakingviews) – Al Gore has partially vindicated the UK government over soaring energy costs. Ministers last week indicated they expected private sector suppliers to rescue rivals that have gone bust due to the surge in gas prices, without state support. Now Generation Investment Management, co-founded by the former U.S. vice president, is injecting $600 million into British power group Octopus. It’s not necessarily a template for future deals, though.
Larger Funds of Hedge Funds Dominate in H1, Citco Data Shows (Hedge Week)
Funds of hedge funds generated an average gain of 4.2 per cent during the first six months of the year, outflanking long/short equity hedge funds and convertible arbitrage strategies, with larger portfolios pulling ahead of the pack as bigger proved to be better in H1. New analysis by Citco Fund Services shows funds of hedge funds maintained their positive momentum from 2020 – when they ended the year up more than 11 per cent on average – with a 4.2 per cent average return, and a median return of 4.3 per cent, between January and June this year.