Are Bill Ackman’s Emotions Getting the Better of Him? (TheStreet)
With volatility returning to the markets, investors should take a look at the biggest mistake made by famous activist investor Bill Ackman and avoid repeating it. That’s what Daniel Crosby, a specialist in behavioral finance, recommended in an interview with Real Money. Ackman’s Pershing Square hedge fund unveiled a $1 billion short position in Herbalife (HLF) back in December 2012. And this past July, he said that Herbalife’s business model is finally on a track to “disappear” as its distributors begin to flee what is quickly “becoming the least attractive multilevel marketing company to work for.”
Dalio Defends ‘Unusual Culture’ At Bridgewater (CNBC)
Ray Dalio‘s Bridgewater Associates has faced a bevy of questions about its high-pressure corporate culture. Dalio admitted Tuesday that it’s not for everybody. “This is an unusual culture. Because we sort of kept it behind the scenes, it’s largely misunderstood,” the head of the $150 billion hedge fund said at the Delivering Alpha conference in New York presented by CNBC and Institutional Investor. “Some people absolutely hate it and some people can never work someplace else,” he added.
BlackRock’s McKenna Said to Start Merger-Arbitrage Hedge Fund (Bloomberg)
BlackRock Inc. has started a hedge fund with a $200 million investment from New Zealand’s sovereign-wealth fund that will seek to profit from bets on companies involved in takeovers. The merger-arbitrage fund began trading this month and is run by former Harvard money manager Mark McKenna, who oversees the firm’s global event-driven strategy aimed at benefiting from takeovers, divestitures and management changes, according to a person with knowledge of the matter. BlackRock is joining firms including Paulson & Co., Manikay Partners and Arrowgrass Capital Partners that have recently raised dedicated merger funds.
Impala Asset Management Founder Robert Bishop’s Best Stock Idea: Teck Resources (CNBC)
Teck Resources has seen its shares explode over the past year, but Robert Bishop believes there’s still room for growth. The Impala Asset Management founder spoke at the 2016 Delivering Alpha conference on Tuesday and recommended investors buy the natural resources exploration firm. Teck’s shares have soared some 315 percent in 2016. “Management has done a very good job of cutting costs,” Bishop said. He also is enthusiastic about Teck’s involvement in the $13.5 billion Fort Hills Orange Sands project.