Elliott Management Founder Singer: Low Rates, Radical Monetary Policy Have Not Led To Sustainable Growth (CNBC)
Investors face risks they haven’t seen before due to the aggressive actions of global central bankers, Paul Singer of Elliott Management said Tuesday. Repeating a theme at the Delivering Alpha conference, Singer faulted the Federal Reserve and others for creating unusual dangers that are unique in the “5,000 years-ish” history of finance due to low and negative interest rates. “What they have done is created a tremendous increase in hidden risk, risk that investors don’t exactly know or have faced about their holdings,” he said at the conference presented by CNBC and Institutional Investor. “I think it’s a very dangerous time in the global economy and global financial markets.”
Full Interview With Jim Chanos On Market, Tesla (CNBC)
Jim Chanos, the founder and managing partner of Kynikos Associates, discussed his market views, short investments, China and the election in an extensive interview with CNBC’s Scott Wapner at CNBC/Institutional Investor’s Delivering Alpha conference on Tuesday. On the macro environment: “I have no idea what is going on. … It’s a crazy time as I’ve ever seen and the cross currents are there politically, financially, the central banks. It’s tough enough trying to get our companies right,” Chanos said.
Amazon Shares Could Double In Three Years, Bill Miller Says (CNBC)
Amazon.com shares, already enjoying a torrid run, could “double in three years,” value investor Bill Miller said Tuesday. The e-commerce titan will rise on the strength of continued revenue growth and margin expansion in its rapidly growing Web Services business, the LMM chief investment officer said. He added that he sees more upside for Amazon than Facebook or Google because the U.S. retail market dwarfs the advertising market occupied by Facebook and Google. Amazon shares have climbed more than 40 percent in the last year.
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.