Editor’s Note: Related tickers: Apple Inc. (NASDAQ:AAPL), The Procter & Gamble Company (NYSE:PG), US Airways Group, Inc. (NYSE:LCC), AMR Corporation (PINK:AAMRQ), Facebook Inc (NASDAQ:FB), Steinway Musical Instruments Inc (NYSE:LVB), TransCanada Corporation (NYSE:TRP), Sony Corporation (ADR) (NYSE:SNE), The Walt Disney Company (NYSE:DIS), Micron Technology, Inc. (NASDAQ:MU), SPDR Gold Trust (ETF) (NYSEARCA:GLD), Barrick Gold Corporation (USA) (NYSE:ABX), E I Du Pont De Nemours And Co (NYSE:DD)
Well-known investor George Soros has nearly doubled the size of his investment in Apple Inc. (NASDAQ:AAPL), the latest sign how the struggling stock is drawing big bets from celebrity investors. Just a day after investor Carl Icahn revealed his plans to build a big position in Apple Inc. (NASDAQ:AAPL), fellow billionaire Soros disclosed in a regulatory filing that he now owns 66,800 shares of the company. The two are the latest deep-pocketed investors eyeing Apple Inc. (NASDAQ:AAPL)’s nearly $150 billion in cash and investments, hoping the company will do something with that financial warchest to enrich shareholders. The size of Icahn’s investment is unclear. Soros, though he owns more than $34 million worth of Apple Inc. (NASDAQ:AAPL) shares, doesn’t crack even the top 10 holders of the stock. The largest individual hedge fund owner is David Einhorn’s GreenLight Capital, with 2.3 million shares, says S&P Capital IQ, followed by D. E. Shaw, which owns 1.7 million shares. Leon Cooperman of Omega Advisors also got back into Apple Inc. (NASDAQ:AAPL) shares by buying 31,000 of the company.
Soros dumps US Airways, Tiger Consumer likes Facebook (Reuters)
Billionaire investor George Soros dumped 7.85 million shares of US Airways Group, Inc. (NYSE:LCC) in the second quarter, a regulatory filing on Wednesday showed. It was a timely move by the investor’s Soros Fund Management. On Tuesday, the U.S. Justice Department filed a lawsuit to block the proposed merger of US Airways Group, Inc. (NYSE:LCC) and AMR Corporation (PINK:AAMRQ), the parent company of American Airlines. Other regulatory filings from hedge funds and investment firms showed Leon Cooperman’s Omega Advisors soured on Facebook Inc (NASDAQ:FB) in the second quarter, but Patrick McCormack’s Tiger Consumer Management took a shine to the social networking company.
Hedge fund sells 19 million shares of Procter & Gamble (USAToday)
Hedge fund manager Bill Ackman has sold two-thirds of his stake in Cincinnati-based The Procter & Gamble Company (NYSE:PG) – cutting his share in the company that he pressured to cut costs and replace its CEO.But in another financial move, Ackman purchased the right to buy shares in the future that could make him an even bigger The Procter & Gamble Company (NYSE:PG) investor than before. …Ackman’s firm retains 8.9 million shares worth $723 million. Pershing Square is now The Procter & Gamble Company (NYSE:PG)’s 30th-largest investor, with a 0.33 percent stake, down from No. 10 with a 1 percent stake, according to Bloomberg.
Steinway sale to hedge fund confirmed (CityIndex)
The sale of Steinway Musical Instruments Inc (NYSE:LVB) has been confirmed, after a deal that values the firm at $512 million (£330 million) was agreed with a hedge fund. Paulson & Co made a larger offer than a previous bid that had been made by rival firm Kohlberg & Co, which says it will not be looking to increase its own offer. Shares in Steinway Musical Instruments Inc (NYSE:LVB) rose by around six per cent on the back of the news of the sale, pushing its stocks close to the sale price agreed with the hedge fund. Sales were up by only two per cent for the piano manufacturer last year, so the new owner will need to find a way to turn the business around in the coming months and years.
Gold Bull Paulson Cuts SPDR Stake by Half Amid Bear Market (BusinessWeek)
Billionaire hedge fund manager John Paulson, who told investors as recently as last month that they should own gold, cut his holdings in the metal by more than half as prices plunged into a bear market. Paulson & Co., the largest investor in the SPDR Gold Trust (ETF) (NYSEARCA:GLD), the biggest exchange-traded product for the metal, pared its stake to 10.2 million shares in the three months ended June 30 from 21.8 million at the end of the first quarter, according to a government filing yesterday. The New York-based firm, which manages $18 billion, cut its ownership for the first time since 2011 “due to a reduced need for hedging,” according to an e-mailed response to questions. It also sold options to buy shares in Barrick Gold Corporation (USA) (NYSE:ABX) in the future, filings show.
SEC halts fraud by Ohio-based hedge fund manager (HedgeWeek)
The Securities and Exchange Commission has filed an emergency action charging Anthony J Davian and his Richfield, Ohio-based asset management firm with defrauding investors in hedge funds they manage. A federal district court granted the SEC’s motion for emergency relief, halting the fraud. The SEC alleges that since 2011 Davian, a 34-year old resident of Copley, Ohio, has raised more than USD1.5m from investors by promoting Davian Capital Advisors as a highly successful investment management firm that manages a portfolio of profitable hedge funds.
Mad Money, August 14, 2013 (CNBC)
Hedge Funds: More Diverse Than you Thought? (ai-CIO)
The myth of hedge funds being a homogenous group should be dismissed, and investors should recognise their potential as portfolio diversifiers, according to a new report from Commonfund. In its latest whitepaper, the fiduciary manager tasked John Delano, Kristofer Kwait, and Justin Santana with investigating the role of hedge funds today. They found that even in periods where hedge funds underperform the broader market, they should still be considered valuable by investors as a diversifier for their portfolio. The battle for hedge funds to win over hearts and minds will be a long one though. As the report outlined, there’s a number of misconceptions which continue to be believed, reflecting a “backlash against a perceived element of exclusivity”.
Hedge funds play key role in Ontario Teachers’ Pension Plan (Risk)
There is no denying it is a bold move. A former hedge fund manager will soon take over as the head of one of Canada’s largest pension plans. Ron Mock, senior vice-president of fixed income and alternative investments at Ontario Teachers’ Pension Plan (OTPP), will step into the CEO role on January 1, 2014 when Jim Leech retires after 12 years at the helm. Mock, who joined OTPP in 2001 as director of alternative investment, was previously CEO of Phoenix Research and Trading, where he was responsible for all of Phoenix Canada’s fixed income business, including the Phoenix Fixed Income Arbitrage hedge fund which closed in 2000 after losing C$125 million in the US bond market, according to a Ontario Securities Commission settlement document.
Hedge fund billionaire reinvents himself (LeaderPost)
In an open letter this week inviting Russ Girling, CEO of TransCanada Corporation (NYSE:TRP), to a live debate on the merits of the Keystone XL pipeline, California hedge fund billionaire Tom Steyer said he is motivated by uncovering the truth. It’s a noble pursuit. Yet the facts about the pipeline from Alberta to the U.S. Gulf Coast have been in plain sight since its regulatory review in the United States began five years ago. What’s less known is why Steyer, 56, a President Obama fundraiser and selfdescribed “professional pain in the ass” who is reinventing himself as a “cleanenergy philanthropist,” has suddenly gone sour on the oilsands.
Loeb’s Fund Purchases $113.7 Million Stake in Disney (Bloomberg)
Daniel Loeb’s Third Point LLC, the hedge-fund pressing Sony Corporation (ADR) (NYSE:SNE) to sell part of its entertainment business, acquired a $113.7 million stake in The Walt Disney Company (NYSE:DIS), extending his bet on the industry. Third Point held 1.8 million shares of Burbank, California-based The Walt Disney Company (NYSE:DIS) at the end of June, according to a regulatory filing yesterday by the New York-based investor. He also held options to buy 32,000 more, the filing showed. Loeb was buying the stock as he pressed Tokyo-based Sony Corporation (ADR) (NYSE:SNE) to sell as much as 20 percent of its film, TV and music business in an initial public offering.
Trian’s Peltz Buys DuPont Stake as Chemical Maker Weighs Options (MoneyNews)
Trian Fund Management LP, the hedge fund co-founded by activist investor Nelson Peltz, acquired a 0.6 percent stake in E I Du Pont De Nemours And Co (NYSE:DD) as the chemical maker considers options for one of its more volatile businesses. Trian held 5.78 million shares of Wilmington, Delaware-based E I Du Pont De Nemours And Co (NYSE:DD) as of June 30, the New York-based fund said in a regulatory filing Wednesday. The shares give Trian a stake worth about $343 million at Wednesday’s closing price. E I Du Pont De Nemours And Co (NYSE:DD) is the largest U.S. chemical maker by market capitalization, according to data compiled by Bloomberg.
Hedge fund takes $595 million stake in chipmaker Micron (IdahoStatesman)
A hedge fund took a $595 million stake in Micron Technology, Inc. (NASDAQ:MU) after the shares surged 57 percent in the first quarter. Baupost Group LLC, the Boston-based hedge-fund firm run by Seth Klarman, bought 41.5 million shares of the Boise memory-chip maker during the three months ended in June, making it the firm’s fourth-biggest stock investment by market value, according to a filing Wednesday with the Securities and Exchange Commission. Micron Technology, Inc. (NASDAQ:MU) last month completed a $2 billion purchase of Elpida Memory Inc. as it seeks to deliver sustainable profits in the volatile market for memory chips used in personal computers and mobile devices. Micron Technology, Inc. (NASDAQ:MU) has reported a net loss in five of its last 10 fiscal years.
