Jana Says Rockwood Worth $80 a Share in Possible Takeover (Bloomberg)
Jana Partners LLC, the $5 billion activist hedge fund run by Barry Rosenstein, said Rockwood Holdings, Inc. (NYSE:ROC), the specialty chemicals maker seeking to exit businesses, may be worth $80 a share in a takeover. “We believe a ROC made up of lithium and surface treatments could make a very attractive takeover candidate for large multinational chemical names” such as BASF SE, Albermale Corp. and Soc. Quimica y Minera de Chile SA, Jana said in the letter, referring to Rockwood by its ticker symbol.
Workday Inc (WDAY): Billionaire Mandel Clears 9% (Insider Monkey)
A 13G filed with the SEC has reported that Lone Pine Capital, which is managed by billionaire and Tiger Cub Stephen Mandel, owns 3.5 million shares of Workday Inc (NYSE:WDAY), a $9.7 billion market cap enterprise software company. This gives Lone Pine over 9% of the total shares outstanding. We track quarterly 13F filings from hedge funds such as Lone Pine as part of our work developing investment strategies (we have found, for example, that the most popular small cap stocks among hedge funds generate an average excess return of 18 percentage points per year) and so we can see that as of the end of December the fund owned about 980,000 shares. See more of Mandel’s stock picks.
Nikko Asset Management’s Devitt sees consolidation in outlook for Fofs and Fohfs (Investment Europe)
Aoifinn Devitt, head of the World Series Fund platform at Nikko Asset Management, sees consolidation as one key outcome for funds of funds and funds of hedge funds in future. The fund of fund industry has been subjected to a multi-pronged attack in recent years, as fees and assets come under pressure, and performance, transparency and “value added” are probed. Escalating competition from consultants and a spike in the number of institutions wiling to pursue their own direct programs, have forced groups to adapt, even preemptively, as, to paraphrase an Intel executive, “only the paranoid survive”.
Paamco Seeks Asian Institutional Money for Hedge-Fund Strategies (Bloomberg)
Pacific Alternative Asset Management Co., an $8.6 billion U.S. fund-of-hedge-funds, is seeking to raise money from pensions and sovereign wealth funds in Asia to diversify its investor base. U.S. investors account for 85 percent of its clients, mostly institutional, with the rest spread across Asia, Europe and the Middle East, said David Walter, Singapore-based director for the Irvine, California manager known as Paamco. The company is looking at Asian managers employing relative-value strategies and those investing in high-yield stocks, he said. Paamco, which invests in emerging hedge-fund managers around the world for clients including the California Public Employees’ Retirement System, is seeking to capitalize on growing demand in Asia for alternative investments such as hedge funds and real estate.
How to Choose a Good Hedge Fund for Your Portfolio: Mark Anson’s Secret Formula (CFA Institute Enterprising Investor)
Evaluating the quality of a money manager is a perennially important topic. It’s all the more important when that money manager charges 2% of assets under management and 20% of any gains. Yes, that age-old conundrum of how to choose a good hedge fund for your portfolio remains a difficult task. But Mark J.P. Anson, CFA, CAIA, thinks he has bright light to shine on the problem. As the person responsible for alternative assets at the Bass Family Foundation, he enjoys wider sight lines than many other investors who have taken the plunge into hedge funds. At last week’s 2013 Asset and Risk Allocation conference in New York, Anson began his presentation with a Sherlock Holmes–like quote: “When you have eliminated all of the beta, whatever remains, however improbable, must be the alpha.” In other words, if you want to identify a skilled hedge fund manager, you need to dissect the many factors (betas) leading to an actual return (alpha).
David Einhorn’s Greenlight ‘Applauds’ Apple (AAPL) Capital Return Plan (StreetInsider.com)
While Apple Inc. (NASDAQ:AAPL) didn’t go for the hedge fund manager’s ‘iPrefs’ idea, David Einhorn and his Greenlight Capital hedge fund were positive on the company’s announcement Tuesday to tap the debt market and more than double its capital return program. With second quarter earnings, Apple announced that its Board has increased its share repurchase authorization to $60 billion from the $10 billion level announced last year.
Credit: Apple Inc. (NASDAQ:AAPL)
Hedge fund billionaires vs. nature and neighbors (FierceFinance)
Superstorm Sandy was a wake-up call for many people who had coastal properties. The debate about what to do has started in earnest, though some hedge fund managers aren’t going to wait around for a public solution. “Joshua Harris, a billionaire hedge fund founder and an owner of the Philadelphia 76ers, began to…