Editor’s Note: Related tickers: Herbalife Ltd. (NYSE:HLF), Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Credit Suisse Group AG (NYSE:CS), Morgan Stanley (NYSE:MS), Compuware Corporation (NASDAQ:CPWR), Dell Inc. (NASDAQ:DELL), Apple Inc. (NASDAQ:AAPL), EMC Corporation (NYSE:EMC), Sprint Nextel Corporation (NYSE:S), AT&T Inc. (NYSE:T)
Loeb’s Third Point Reinsurance Files for Public Offering (Bloomberg)
Third Point Reinsurance Ltd., which counts hedge-fund manager Daniel Loeb as a founding shareholder, filed for a U.S. initial public offering to help it expand underwriting and increase investments. JPMorgan Chase & Co. (NYSE:JPM), Credit Suisse Group AG (NYSE:CS) and Morgan Stanley (NYSE:MS) are leading the offering, according to a regulatory filing yesterday from Bermuda-based Third Point Re. The sale amount of $250 million listed in the document is a placeholder used to calculate registration fees and may change.
Herbalife Shares Surge And Close At New 2013 High (Forbes)
Shares of Herbalife Ltd. (NYSE:HLF), the controversial nutritional supplements seller, surged by more than 6.6% on Monday and closed at their highest level this year. Herbalife Ltd. (NYSE:HLF)’s stock has now returned 57% in 2013, making it one of the best-performing major stocks in the nation this year. The stock closed at $52.30 on Monday, higher than $50.54, which was its closing price May 21 and the stock’s previous highest close in 2013. The run-up of Herbalife Ltd. (NYSE:HLF)’s stock is terrible news for William Ackman, the billionaire hedge fund manager who has placed a $1 billion bet against Herbalife Ltd. (NYSE:HLF)’s stock and has been publicly calling the company a pyramid scheme since December. Ackman’s Pershing Square hedge fund underperformed the U.S. stock market in the first half of the year, returning about 6% after fees, weighed down by its big Herbalife Ltd. (NYSE:HLF) +6.67%short.
High stakes for SEC in civil case against former Goldman trader (WashingtonPost)
The Securities and Exchange Commission on Monday kicked off its high-profile court case against Fabrice Tourre, the Goldman Sachs Group, Inc. (NYSE:GS) trader known as “Fabulous Fab” who has come to symbolize Wall Street’s reckless behavior leading up to the economic meltdown. …The SEC accused Tourre and Goldman Sachs Group, Inc. (NYSE:GS) of creating the mortgage product at the request of tycoon John Paulson and his hedge fund, which was looking for a way to bet on a drop in the housing market. But investors were not told that the hedge fund helped pick the securities that went into the product, known as a collateralized debt obligation, the agency said.
Hedge fund performance dips from highs (GlobalInvestorMagazine)
The SS&C GlobeOp Hedge Fund Performance Index reported June performance of -1.94%, while the firm’s Capital Movement Index showed inflows down 1.30% over the same period. The results were down from the all-time high reported the previous month, which saw the index reach 150.07 in June. Bill Stone, chairman and chief executive officer, SS&C Technologies, said: “Outflows exceeded inflows for the month, with capital activity mirroring prior quarter-ends and reflecting typical investor activity.” The SS&C GlobeOp Hedge Fund Performance Index provides an asset-weighted performance snapshot for funds administered on the SS&C GlobeOp platform.
Hedge fund ads worry rivals (GulfNews)
Hedge funds could steal market share from the US mutual fund industry after the Securities and Exchange Commission scrapped a ban on hedge fund advertising last week. The marketing rules, which come under the Jumpstart Our Business Startups Act, are intended to encourage new business development and enable private capital raising. For the first time in 80 years, hedge fund managers in the US will be able to advertise, speak more openly to the press and unlock password-protected websites.
Tiger Cub Philippe Laffont On How To Get Hired At A Hedge Fund (Chron)
Last week OneWire published their first interview with Philippe Laffont, Founder and CEO of Coatue Management. In Part II of the interview, Laffont explains his investment philosophy, how he figures out great long and short positions, and how to get hired at a top hedge fund. “For us, the key to investing is thinking…how can a company perform three to five years out?…Not focus so much from the short term, try to see the forest from the trees…Few people in the market think about the long term, and that’s our edge.” But of course, he says, no one is right all the time. Laffont says he often finds it easier to prove something is wrong (finding short positions) than it is to find great companies for long investments.
Another extension in Compuware’s talks with hedge fund (Freep)
Detroit-based Compuware Corporation (NASDAQ:CPWR) and an activist New York hedge fund apparently will continue their private merger and acquisition talks for several more months. The business software maker and Elliott Management disclosed today that they agreed late last week to a second extension to Sept. 15 on a standstill agreement which, among other things, prohibits the hedge fund from making buyout offers or revealing nonpublic information about Compuware Corporation (NASDAQ:CPWR). The agreement originally took effect Feb. 14 and was later extended from mid-May to today.
Dell investors should take the money and run (MarketWatch)
This offer looks like a no-brainer, at least to me. Dell Inc. (NASDAQ:DELL) -1.31% likely has years of grueling work ahead of itself to transform the business into something resembling a growth engine again — if it can do so at all. And that work is not going to make the company’s financial results in the interim look attractive to any but a gambling investor with a taste for big risks. The rationale for keeping the company public now also has another major flaw that’s not been frequently noted — Wall Street’s current low valuation of other tech hardware firms, even those with strong businesses. When companies like Apple Inc. (NASDAQ:AAPL) +0.22% and EMC Corporation (NYSE:EMC) +1.32% can only command discount valuations, what are the chances that investors will give any sort of break to Dell Inc. (NASDAQ:DELL)?
Hedge funds spot opportunities in Poland sell-off (Reuters)
Hedge funds are betting against Poland’s sovereign bonds and currency, taking advantage of a sell-off in emerging markets and slowing domestic growth to target a country that has been a top pick for foreign investors. The European Union’s biggest ex-communist country has been viewed by many investors in recent years as the star of the new EU members, with 10-year bond yields – the most popular paper among foreigners – roughly halving since joining the bloc in 2004. …”I don’t like the zloty at all. In the hedge fund we’re short,” said Andy Seaman, partner at London-based Stratton Street Capital, which has $2 billion under management across its portfolios.
Hedge funds ads allowed in Canada, but not favoured (TheGlobeAndMail)
Hedge funds may soon launch multimedia advertising campaigns in the United States, but don’t expect the trend to migrate north of the border any time soon. Last week, the Securities and Exchange Commission, the U.S. federal securities regulator, voted to end a decades-old ban on marketing hedge funds and other private investment funds to a broad audience. The move is expected to make it a bit easier for startups to gain funding, as outlined well by Wired.
John Paulson’s telecom picks take an even bigger Leap (CNBC)
When John Paulson founded his eponymous hedge fund company in 1994, his focus was merger arbitrage. Now, with a two-decade track record and one massive win in his credit strategy, he’s again finding luck with his original investing style—and with telecommunications in particular. So far this year, Paulson has won big on the mobile carrier SoftBank Corp.’s $21.6 billion controlling investment in Sprint Nextel Corporation (NYSE:S), a deal in which he lobbied successfully for a higher price and a bigger cash component. He’s improved his returns from MetroPCS’s sale to the T-Mobile unit of Deutsche Telekom by demanding better terms and less debt. And in the wake of news late Friday that AT&T Inc. (NYSE:T) planned to take over Leap Wireless in a $1.2 billion cash deal—valuing the prepaid wireless provider at 88 percent above its share price at that time—Paulson appears primed to make even more from his telecom holdings.