Billionaire hedge fund manager David Tepper is short the euro (LeapRate)
David Tepper, the founder of hedge fund Appaloosa Management, said that he’s short the euro during a talk at the Robin Hood Investors Conference in New York City. Tepper, whose fund specializes in distressed debt, said he expects that the European Central Bank will need to expand its balance sheet by instituting more quantitative easing and further “loosening” monetary policy to stimulate the eurozone’s flagging economy. Early on Tuesday, news reports surfaced that the ECB is weighing whether it should start buying corporate bonds, sending the euro back to the downside after a brief respite. The pair last traded on Wednesday below the $1.2700 handle.
Cincinnati investors targeted for New York hedge fund (BizJournals)
A Cincinnati native who is the son of one of the local business community’s best-known CEOs has launched a hedge fund in New York. Daniel Barach, the son of former U.S. Shoe CEO Phil Barach, is targeting Cincinnati investors to put money into the fund, known as Turnaround Stocks L.P. “I’m born and raised in Cincinnati, and I believe I can help people make a lot of money,” Barach told me. “I have a lot of loyalty to my hometown. There’s a connection.” Barach has quite a track record. He ran a similar hedge fund – MLT Capital – for 11 years, building it into a $150 million operation before shutting it down when the stock market collapsed in 2008. Then, he temporarily retired.
Kyle Bass warns QE end will shake up markets (CNBC)
Central banks meeting next week will expose a huge divergence in monetary policy between several major economies, putting the macro environment in focus and weighing on foreign exchange, hedge fund manager Kyle Bass said Wednesday. The founder of the $1.7 billion hedge fund Hayman Capital thinks the Fed likely will taper its bond-buying stimulus to zero next week. The Bank of Japan, however, likely will announce it will do whatever it takes to prevent the world’s third-largest economy from heading into a major crisis.
Lone Pine Posts Gains But Remains Down for the Year (InstitutionalInvestorsAlpha)
Most of the hedge funds managed by Stephen Mandel Jr.’s Lone Pine Capital posted modest gains in the third quarter. However, they still remained mired in the red for the year. According to the Greenwich, Connecticut-based firm’s latest report to clients dated October 14, third quarter returns ranged from flat for the long-only fund, Lone Cascade, to up 2.7 percent for Lone Tamarack, its new long-short fund. Lone Pine told clients that both longs and shorts outperformed global market indexes in the most recent three-month period.
Herbalife Bull Is Back, More Bullish Than Ever (WSJ)
One of Herbalife Ltd. (NYSE:HLF) -6.19% most bullish analysts is back. He’s with a new firm, but he has the same optimistic views on the controversial maker of nutritional supplements. …Mr. Ackman has alleged the company should be shuttered and its stock price should go to zero. Herbalife has said it complies with all laws and regulations and welcomed the inquiry as a chance to clear its name. For his part, Mr. Ramey now predicts the investigation will ultimately lead to a settlement between Herbalife and the FTC in which the company gets a fine or sanctions, but won’t get shut down.
Sector winners since the dip (CNBC)
Argentina Appeal of BNY Ruling in Bonds Case Is Dismissed (BusinessWeek)
Argentina’s appeal of a ruling that The Bank of New York Mellon Corporation (NYSE:BK) acted properly when it refused to pass along a $539 million payment to holders of the nation’s sovereign debt was thrown out. Argentina made the payment into a BNY Mellon account in June, in an attempt to pay holders of its restructured debt without also paying $1.5 billion to a group of hedge funds holding the country’s defaulted bonds, as a judge had ordered. BNY Mellon held onto the payment, triggering a default when bondholders weren’t paid by July 30.
Bridgewater Sues Ex-Employees Who Founded Competitor Convoy (BusinessWeek)
Bridgewater Associates LP, the $160 billion hedge-fund firm founded by Ray Dalio, sued two former employees who started competitor Convoy Investments LLC, claiming they exaggerated their previous roles with Bridgewater to win clients. Convoy founders Howard Wang and Wenquan Wu, who Bridgewater said served in “low-ranking roles” in client services and information technology, have tried to pass themselves off as “former key figures,” according to the firm’s complaint accusing the two of violating laws against false advertising.
Viking Among Hedge Funds Getting a Boost from Alibaba (InstitutionalInvestorsAlpha)
O. Andreas Halvorsen‘s Greenwich, Connecticut-based hedge fund firm, Viking Global Investors, disclosed a significant position in Alibaba Group Holding Ltd (NYSE:BABA), the Chinese e-commerce giant whose September initial public offering was the biggest ever. Alibaba kicked in 2 percent of the Viking Global Equities fund’s 4.1 percent gain in the third quarter, according to Viking’s third-quarter letter to investors, obtained by Alpha. The company was the second-best performer for the Viking Long Fund, accounting for 0.6 percent of the fund’s 2.8 percent gain for the quarter….
Canadian activist fund managers prefer to stay under the radar (TheGlobeAndMail)
So we’re all probably by now familiar with the stereotype of the loud-mouthed, brash, arrogant, activist investor. They’re camera-ready, often American hedge fund managers, who will think nothing of engaging in shouting matches on national television – sometimes with each other. We’re not devoid of these kinds of larger-than-life activist characters in Canada either; to wit, long-time dissident investor George Armoyan, executive chairman of Clarke Inc., has never been accused of being a shrinking violet.
Australian driller Boart Longyear agrees $352 million restructuring deal (Reuters)
Struggling Australian drilling services company Boart Longyear Ltd (BLY.AX) said on Thursday it had agreed a restructuring deal worth up to $352 million with U.S. hedge fund Centerbridge Partners to cut debt and cut the risk of a potential default. Boart, the world’s largest supplier of drilling equipment and services to miners, said the restructuring involved up to $225 million in new “covenant lite” term loans and was seeking up to $127 million in new equity.