Billionaire Hedge Fund Titans Dinan, Lasry on Election, Markets And Best Investment Ideas (CNBC)
Billionaire hedge fund managers Jamie Dinan and Marc Lasry shared their market views in an exclusive interview with CNBC’s Scott Wapner on Tuesday. On financials: “The regulatory environment offsets any kind of benefit from the steepening yield curve,” Dinan said. On the market: “I don’t think it’s a great environment. There’s nothing cheap out there … only thing we’re seeing out there [is the] energy sector, where we … still see a lot of opportunity [and also] Europe,” Lasry said.
Maverick Fund Said to Lose 6.8% as Bets Against Technology Hurt (Bloomberg)
Maverick Capital’s main hedge fund lost 6.8 percent this year through Oct. 7 as its bets against technology stocks soured, according to a person with knowledge of the matter. The $11 billion firm, run by Lee Ainslie, told investors last week that bearish bets on technology stocks hurt during the third quarter, said the person, who asked not to be identified because the information isn’t public. A few unexpected takeovers of companies Maverick had wagered against also contributed to the loss, including Arm Holdings Plc, which was bought by SoftBank Group Corp. on Sept 6.
Stewart Info Settles With Starboard to Replace Four on Board (Bloomberg)
Stewart Information Services Corp. is reshaping its board by adding three independent directors and its chief executive officer to the panel as part of a settlement with its biggest shareholder, activist investor Starboard Value LP. Stewart CEO Matthew Morris and Clifford Press — a former Morgan Stanley banker who founded his own investment companies — will join the property-title insurer’s board immediately, the company said in a statement Tuesday. They replace Malcolm Morris and Stewart Morris, who agreed to resign. Stewart is searching for two additional independent directors to replace Laurie Moore-Moore and Frank Keating, who will step down once replacements are found.
New Hedge Fund Mill Hill Secures Investment From Protege (Reuters)
Former Macquarie portfolio manager David Meneret has secured financial backing from Protege Partners for his new hedge fund, Mill Hill Capital, the fund and firm said on Tuesday. New York-based Mill Hill Capital, which will focus on investments in corporate and securitized assets including bonds and collateralized loan obligations, plans to start trading in November. Neither the fund nor the firm would say exactly how large Protege’s investment will be. Protege has spent between $50 million and $125 million on each of its most recent deals. “This relationship will provide Mill Hill Capital the opportunity to gain critical mass and foster the growth of the firm,” Meneret said.
A Critical Eye on Wall Street’s Secrets (The New York Times)
On Wall Street, moneymaking companies have long relied on confidentiality agreements to prevent employees from divulging their secrets. But now, the nation’s labor board has challenged some provisions in the contracts that Bridgewater Associates, the world’s biggest hedge fund firm, requires each full-time employee to sign. The unusual action is calling into question longstanding practices and prompting some companies to re-examine their employment agreements. Prompted by a sexual harassment complaint by a former Bridgewater employee, the National Labor Relations Board filed a pending administrative action against the firm this summer saying Bridgewater “has been interfering with, restraining and coercing” employees from exercising their rights.
Ex-Baupost’s Tom Kier Said to Start Hedge Fund With $37 Million (Bloomberg)
Former Baupost Group principal Tom Kier has started a hedge fund in New York with $37 million. Delonix Capital Management, which began trading internal money last month, opened to outside investors on Oct. 1, according to a person familiar with the matter. The firm has as much as $113 million in additional commitments over the next few quarters, the person said, who declined to be named because the information is private. The fund makes fundamentally-driven value investments on the debt and equities of companies globally. “Investments will generally consist of equity and fixed income-related securities and other assets that may be affected by business, financial market or legal uncertainties,” the firm said in an Oct. 14 regulatory filing.
Billionaire David Tepper: I’m Generally ‘Pretty Cautious On The Market’ (CNBC)
Hedge fund billionaire David Tepper told CNBC on Monday he is “pretty cautious” on the market right now. In an interview with Scott Wapner on “Halftime Report,” the founder of Appaloosa Management said the current environment is “difficult” but hedge funds can still make “OK” returns. While wages and the strength of the dollar are pressuring margins, Tepper said investors also have to deal with the backdrop of uncertainty surrounding the election. “Depending on the outcome of the election, the market can move different ways. So, generally speaking, pretty cautious on the market, not outright bearish on the market,” he said.
Carl Icahn Defends Herbalife (HLF) (TheStreet)
Carl Icahn isn’t going to back down from his position in Herbalife (HLF) anytime soon. “I’ve said it for years, it’s undervalued,” the billionaire said Monday afternoon on CNBC’s “Halftime Report.” “It’s got a good model. It gives jobs to a lot of people.” Icahn has been in a highly public war with hedge fund manager Bill Ackman over the dietary supplement company. Ackman has accused Herbalife of being a pyramid scheme. In 2012, he entered into a roughly $1 billion short position against the stock. So far, the move has blown up in Ackman’s face as Herbalife stock continues to gain. Icahn has a roughly 21% stake in Herbalife and is seeking to up that to 50%. “I’m not here to bash Bill Ackman. I think he is a bright guy,” Icahn said. “I think he is completely wrong.”
