Third Point Takes New Positions in Tech Stocks, Trims Earlier Losses (Reuters)
BOSTON (Reuters) – Daniel Loeb’s hedge fund Third Point LLC took new positions in technology companies including Alibaba (BABA.N) and Amazon (AMZN.O) and reported strong returns in the second quarter after he took back the reins as sole chief investment officer in May. The billionaire investor who founded Third Point a quarter century ago also told clients in a letter seen by Reuters that he bought a stake in The Walt Disney Co (DIS.N) where streaming services are creating the company’s “biggest market opportunity ever.”
How David Einhorn Is Betting on Higher Inflation (AI-CIO.com)
Inflation? What inflation? Hedge fund operator David Einhorn, who famously goes against the grain, is betting that the Consumer Price Index (CPI) will tick up in the US. Not a lot, mind you, but enough to give him a good result. Right now, inflation is muted. In the 12 months through mid-year, the CPI rose 0.6% after dipping 0.1% in May. To exploit what Einhorn sees as a more robust CPI ahead, his Greenlight Capital (assets: $7 billion) is taking positions in inflation swaps, which are derivatives based on Treasury inflation-protected securities (TIPS). His positions are in two-, five-, and 10-year swaps. In May, he wrote in a second-quarter letter to clients, those instruments implied annual CPI increases of just 0.1%, 0.8%, and 1.3%.
THE TRUE TIGER KING: Inside the Sprawling Web of Billionaire Julian Robertson, Whose Legendary Tiger Management has Helped Spawn Hundreds of New Hedge Funds (Business Insider)
Nearly two decades after Julian Robertson closed Tiger Management to outside investors, his fund still constantly pops up in headlines and conversations within the hedge fund industry he helped pioneer. The billionaire North Carolina native’s sprawling network of spin-offs and seeded start-ups is almost overwhelming, and has spawned fellow billionaires like Chase Coleman, O. Andreas Halvorsen, Philippe Laffont, and several others.
Davidson Kempner Says Again It will Not be Tendering Qiagen Shares (Reuters)
BOSTON (Reuters) – Hedge fund Davidson Kempner said again on Thursday it will not be tendering its shares in Qiagen (QIA.DE), days after Thermo Fisher Scientific (TMO.N) said its offer to buy the German genetic test maker expires soon. “Davidson Kempner Will Not Be Tendering Into The Current Offer,” the hedge fund which owns a 3.1% stake in Qiagen said in a statement. It reiterated its position that it considers the current offer “wholly inadequate.”
Hedge Funds Say They Were Left Out of PG&E Stock Sales (The Wall Street Journal)
A group of hedge funds and debt investors that once dreamed of taking over PG&E Corp. are demanding hundreds of millions of dollars from the troubled utility, complaining they were unfairly shut out of a lucrative deal with big shareholders. Led by New York hedge fund Elliott Management Corp., the group of bondholders say PG&E failed to do what it could to ensure they received a slice of equity-raising action, which carried rewards for investors willing to take a chance and aid the California utility’s exit from bankruptcy.
Sculptor Hedge Fund Outflows Diminish While CLO Deals Weaken (Bloomberg)
Sculptor Capital Management Inc. said quarterly outflows in its main hedge fund diminished while its collateralized loan obligation business weakened. Clients pulled $108.5 million from the Sculptor Master Fund in the second quarter, according to a statement Thursday. The firm closed $409 million of CLO deals in the first half, versus $3 billion for all of last year.