Thoma Bravo Buys Ellie Mae, A Buffett-Like Mortgage Software Business That Attracted Wall Street’s Best (Forbes)
Every eruption of market turmoil since the crisis has also yielded a signature deal that benefits from a return to sanity. After all, without the mother of all government standoffs—the 2011 debt-ceiling fight—Warren Buffett may never have had the opportunity to plow $5 billion into Bank of America for a stake now worth $25 billion. Remember the 2015/2016 China slowdown that rocked high-multiple U.S. tech stocks? That helped Microsoft land LinkedIn and Vista Equity to buy Marketo. Both deals are already clear home runs.
Pernod CEO to drive change After ‘Constructive’ Elliott Talks (Reuters)
LONDON (Reuters) – Pernod Ricard will embrace change and continue “constructive” talks with activist investor Elliott Management, CEO Alexandre Ricard said on Tuesday while dismissing speculation that the company could become a takeover target. The world’s second-biggest spirits group behind Diageo is under pressure from New York hedge fund Elliott Management to improve profit margins and corporate governance. Last week Pernod vowed to lift its margins and shareholder returns in a three-year strategic plan that Elliott described as a first small step.
Kyle Bass Says Mild U.S. Recession Most Likely in Middle of 2020 (Bloomberg)
Kyle Bass, founder of Hayman Capital Management, said the U.S. most likely will enter a mild recession by the middle of 2020 as the bounce from fiscal stimulus wanes. The hedge fund manager said it’s unlikely that Democrats, who control the House, will let the Trump administration further stimulate the economy. And the Federal Reserve, which was late in the cycle on raising interest rates, won’t be much help either.
Carlyle Hires Former Och-Ziff Executive as Part of Credit Push (The Wall Street Journal)
Carlyle Group LP is set to hire another senior executive from hedge fund Och-Ziff Capital Management Group LLC as part of its plans to expand its credit business, according to a person familiar with the matter. Nicola Falcinelli will join Carlyle’s London office later this year as a managing director, where he will be reunited with former Och-Ziff colleague Taj Sidhu, whom Carlyle appointed in July last year to lead its European credit opportunities strategy.
Former Fed Chairman Paul Volcker Rips Trump, Congress in New Interview with Hedge-Fund Legend Ray Dalio (Business Insider)
Former Federal Reserve Chairman Paul Volcker decried what he considered the sorry state of the government in an interview with Ray Dalio, the founder and cochief investment officer of Bridgewater Associates, published on Tuesday. Volcker, who served in various roles across government over a 50-year stretch, called out President Donald Trump’s “personal behavior” and Congress’ inability to “function effectively” in the wide-ranging conversation.
Hybrid Security Hedge Fund Enters the Nordic Arena (HedgeNordic.com)
Stockholm (HedgeNordic) – Carlsson Norén Yield Opportunity, a hedge fund investing in hybrid securities that have both debt and equity capital characteristics, was launched at the beginning of January with the aim of serving as a diversifier in traditional portfolios. The vehicle managed by Gothenburg-based asset manager Carlsson Norén Asset Management AB has now joined the Nordic Hedge Index (NHX). Hybrid securities such as preferred shares, convertible bonds, hybrid or perpetual bonds have characteristics of both stocks and bonds. Equity-like characteristics, for instance, can include infinite maturities, coupon deferrals or conversion rights. Debt-like features, meanwhile, include coupon payments and call dates set at issuance.
Most Hedge Funds Started 2019 on Positive Note with Returns of 2.22 per cent, Says Eurekahedge (HedgeWeek)
The Eurekahedge Hedge Fund Index rallied 2.22 per cent in January, supported by the global equity market rally which resulted from the Fed’s dovish stance and optimism over potential progress in the US-China trade talks. The MSCI AC World Index (Local) gained 7.36 per cent over the month, recovering most of the losses it suffered in December last year. Returns were positive across geographic mandates, as most of the fund managers generated gains on the back of the equity market rallies around the globe. North American fund managers gained 3.65 per cent during the month, while their peers focusing on Asia ex-Japan generated 3.11 per cent returns.