Leon Cooperman is Converting His Hedge Fund Into a Family Office: ‘I Don’t Want to Spend the Rest of My Life Chasing the S&P 500’ (CNBC)
Billionaire hedge-fund manager Leon Cooperman is returning outside investor capital at year-end. Omega Advisors is converting to a family office at the end of 2018, according to an investor letter obtained by CNBC. “I turned 75 last April. It is my understanding that if you make it past 65 and cancer doesn’t get you, you can expect to live on average to 85. Hopefully, I can improve on that average, but in any event I don’t want to spend the rest of my life chasing the S&P 500 and focused on generating returns on investor capital,” Cooperman said in the note to clients Monday.
Daniel Loeb’s Third Point Unveils New Position in PayPal, Says it Could be Next Netflix, Amazon (CNBC)
Third Point hedge fund manager Daniel Loeb revealed in an investor letter that his fund has new position in PayPal. The firm added the position in the second quarter, according to an investor letter obtained by CNBC. “Consumers love PayPal because it enables hassle‐free, one‐touch checkout across millions of online merchants,” Loeb said in the note to clients Monday. “We see parallels between PayPal and other best‐in‐class internet platforms like Netflix and Amazon: high and rising market share, untapped pricing power, and significant margin expansion potential.”
Blue States Must Cut Taxes or Face a Population Drop, Says Citadel’s Ken Griffin (CNBC)
Citadel’s Ken Griffin predicts northern states that predominantly support the Democratic Party will be negatively impacted by President Donald Trump’s tax plan. “Under Trump’s tax proposal the elimination of state and local deductibility is going to put pressure on the northern cities to either reduce taxes or they are going to face a reduction in population,” Griffin said at the Delivering Alpha Conference in New York last week. “In the next five to ten years we’ve got to deal with the pressures on the blue states to be competitive with the southern states to maintain strong workforces, strong employment bases in the northern half of our country.”
REFILE-Hedge Fund Caius Says Disappointed with EBA View of UniCredit Capital (Reuters)
LONDON, July 23 (Reuters) – London-based hedge fund Caius Capital on Monday said it was disappointed with the European Banking Authority’s rejection of its request to look into a complex debt instrument used by UniCredit that the fund said was wrongly classified as core capital. Caius in May asked the EBA to investigate the 2.98 billion euro ($3.49 billion) convertible and subordinated bond, known as CASHES, which was issued in 2008.