Hedge Fund News: Carl Icahn, Steve Cohen, Feroz Dewan

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Here’s Why Carl Icahn Thinks Apple Will Surge To $240 Per Share (Bloomberg)
Carl Icahn is out with a new letter to Tim Cook arguing that Apple should buy back more shares and that the stock is grossly undervalued. He says it should be worth $240/share. That’s up dramatically from the $130.50 level it trades at today. First, here’s Icahn’s core argument for why the stock could be worth that much: After reflecting upon Apple’s tremendous success, we now believe Apple shares are worth $240 today.

Most Popular Stocks Among Hedge Funds

Cohen’s Point72 Buys Into Biggest U.S. Oil ETF Before Rebound (Bloomberg)
Point72 Asset Management, the investment firm that manages the wealth of billionaire trader Steve Cohen, bought shares of the biggest U.S. exchange-traded fund that tracks oil prices as crude sank to a six-year low. The firm bought 1.305 million shares of the U.S. Oil Fund valued at about $22 million in the three months through March 31, according to a quarterly filing with the U.S. Securities and Exchange Commission released on May 15. That accounts for 1.05 percent of the shares outstanding at that time, according to data compiled by Bloomberg.

Tiger Global to Revamp Management (The New York Times)
Tiger Global Management, which has risen to prominence by investing in start-ups, will change its leadership as two executives depart, the firm told investors in a letter on Monday. One of the firm’s investment heads, Feroz Dewan, will leave at the end of June to set up his own investment firm, according to the letter. Another partner, Caleb Watts, will also leave next month to focus on managing his fortune.

Top US Hedge Funds Continued To Dump Apple Amid Rally (CNBC)
Top U.S. hedge fund management firms, including Leon Cooperman‘s Omega Advisors and Philippe Laffont‘s Coatue Management, continued to reduce or slash stakes altogether in Apple during the first quarter, as shares of the iPhone maker rallied. According to regulatory filings released on Friday, Coatue cut its holding of Apple by selling 1.2 million shares during the first three months of this year, but it remains the fund’s single biggest U.S. stock investment, with 7.7 million shares.

Shares In FX Firm Plus500 Plunge As It Suspends Some Accounts (Reuters)
Shares in retail FX trading shop Plus500 shed around a third of their value on Monday after the firm, a sponsor of Spanish soccer team Atletico Madrid, said some clients’ accounts had been suspended as it sought to meet money laundering rules. London-based hedge fund Odey Asset Management is the top external shareholder in the firm with almost 13 percent, according to Thomson Reuters data, while JP Morgan Asset Management holds a 6 percent stake.

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