Kyle Bass: Broadcom-Qualcomm Deal Shouldn’t be Allowed to Go Through (CNBC)
Hedge fund manager Kyle Bass said possible U.S. job losses from steel and trade tariffs are a small price to pay now for fighting back against bigger long-term trade issues like intellectual property theft by China. Bass also told CNBC on Wednesday that Broadcom’s proposed merger with Qualcomm should not be allowed to go through because of Qualcomm’s important position developing the technology that underpins the nation’s mobile communications network.
Energen Settles with Activist Corvex; to Add Directors, New Review (Reuters)
March 7 (Reuters) – Oil and gas producer Energen Corp said on Wednesday it has settled a long-simmering fight with activist investor Keith Meister by agreeing to review its businesses and appoint two board members in the wake of pressure to sell the company. Birmingham, Alabama-based Energen, which has operations in the Permian Basin, said it is expanding its board to 11 people and invited energy industry entrepreneur Jonathan Cohen and investor Vincent Intrieri, a longtime associate of billionaire investor Carl Icahn who has sat on numerous boards, to join. Both men will stand for election at Energen’s 2018 annual meeting, as required by Alabama law. At the meeting, Meister’s Corvex Management, a hedge fund that owns a roughly 10 percent stake in Energen, will support the company’s slate, the oil and gas firm said in a statement.
Hedge Fund Citadel Cuts Aptigon Unit Headcount by 34 Percent: Sources (Reuters)
NEW YORK (Reuters) – Citadel, one of the world’s largest hedge fund managers, has cut staff by more than 30 percent in one of its stock-picking units in what several people with direct knowledge of the layoffs described as a surprise move. From late February through Monday, 49 people had lost their jobs at the firm’s two-year-old Aptigon business. They include portfolio managers, analysts, associates and other ancillary staff, according to four people who were not authorized to speak publicly about internal Citadel matters.
Hedge-Fund Exposure to Health-care Stock is at a 5-Year High (MarketWatch)
The health-care sector hasn’t exactly been one of the stand outs of the year in terms of its share performance, but has proved to be a popular choice for hedge funds around the U.S. According to Goldman Sachs, hedge funds in aggregate have sharply added to their positions in health-care stocks thus far this year. Based on late February data, hedge funds are overweight on the sector by 3.54 percentage points, compared with the sector’s weight in the small-cap Russell 2000 RUT, -0.02% This is an increase of more than 3 percentage points, compared with the end of last quarter, and it brings the tilt toward health care to its largest level of the past five years.