Managers should ask themselves: what would Carl Icahn see? (FT)
Carl Icahn makes more money between sips on his outsized Martinis than most mortals make in a lifetime. Last week, the activist investor earned roughly $175m on a three-month-old stake in American discount chain Family Dollar Stores, Inc. (NYSE:FDO). Another investor, Nelson Peltz and his Trian fund, had been doing the heavy lifting for four years, pressing Family Dollar into a sale. But Mr Icahn’s arrival seems to have been a US Cavalry moment, precipitating the acquisition by Dollar Tree, Inc. (NASDAQ:DLTR).
Elliott Sold Additional Hong Kong Bank Shares At Cost (Finalternatives)
Elliott Management didn’t make any money on its effort to squeeze more from its Wing Hang Bank shares, but it didn’t lose any, either. The activist hedge fund sold its stake in the Hong Kong bank for HK$3 billion (US$390 million), or HK$125 per share, tendering it to Oversea-Chinese Banking Corp., which bought Wing Hang for US$5 billion. OCBC was offering HK$125 for each share—exactly what Elliott paid to boost its stake by more than half in an effort to force OCBC to pay more for Wing Hang.
Botox Company Sues Hedge Fund Founder Ackman For Insider Trading (HedgeCo)
Bill Ackman, hedge fund founder and activist investor, has responded to the lawsuit filed on the 1st of August by Botox-producer Allgeran: “This is a shameless attempt by Allergan, Inc. (NYSE:AGN) to delay the shareholders’ fundamental right to call a special meeting and vote their shares. Allergan is threatened by our progress toward calling the special meeting. This scorched-earth approach is further evidence of the board’s and management’s further entrenchment.” Allergan on Friday filed suit against Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Bill Ackman and the Ackman-owned hedge fund, Pershing Square, alleging they used inside information to try and make a profit at the expense of Allergan shareholders.
Cantor Eyeing Hedge Fund, Private Equity Future (Finalternatives)
Former U.S. House of Representatives Majority Leader Eric Cantor resigned from Congress last week, ostensibly to give the man who defeated him in a June primary “a voice in what will be a very consequential lame-duck session.” But he may have had less altruistic reasons for quitting. Politico reports that the Virginia Republican’s exit before the end of his term will not only give his presumptive successor, economics professor David Brat, a head start, but will give Cantor himself a head-start on the one-year period during which he is barred from lobbying and—perhaps more importantly—will relieve him of the obligation to report with whom he is talking about his future.
Hedge Fund Launch: The Rothschild Larch Lane Alternatives Fund (HedgeCo)
Rothschild Larch Lane Management Company is launching a liquid, open end alternatives mutual fund, using a multi-manager structure, offering diversification across a variety of asset classes, time frames, investment styles and strategies. Larch Lane is a pioneer in early stage hedge fund investing, hedge fund seeding, and is a well-known fund of hedge funds investor in the US. Rothschild brings complementary global research of liquid hedge fund managers and distribution.
How Individual Investors Can Invest Like a Hedge Fund (WSJ)
Everyone wants to be a hedge-fund manager these days, it seems. Or at least they want to invest like one. Now, individual investors have more opportunities to get in on the action. Hedge funds, private partnerships that bet both on and against various investments, manage more money than ever, and interest in them remains strong. Over the past 15 years, their returns have beaten the overall stock market, helping drive the boom. Hedge funds also navigated the 2008 downturn with smaller losses than stock mutual funds, and tend to attract the best and brightest from Wall Street, largely because they pay top salaries.