Tax Reform-Related Bonuses Won’t ‘Move the Needle’ on The Wealth Gap, Says Billionaire Ray Dalio (CNBC)
The bonuses and wage increases seen after the passage of the GOP’s tax overhaul won’t change the wealth gap in America, hedge fund giant Ray Dalio told CNBC on Tuesday. Several major companies announced they would give employees one-time bonuses or higher wages as a result of the cut in corporate taxes. The bonuses won’t “move the needle” on the wealth gap, the founder and chairman of Bridgewater Associates told “Squawk Box” at the World Economic Forum in Davos, Switzerland. The changes might result in “a one time 10 percent pass-through of that benefit in terms of trickling down to workers,” Dalio added.
Ackman Cuts Staff, Shuns Limelight as He Seeks to Turn Around Fund (Reuters)
BOSTON (Reuters) – William Ackman is cutting almost a fifth of staff and looking to lower his public profile as he seeks to turn around Pershing Square Capital Management after three straight years of losses, people familiar with the move told Reuters on Monday. The billionaire hedge fund manager, who recently suffered big losses on Valeant Pharmaceuticals International Inc (VRX.TO) and Herbalife Ltd (HLF.N) and lost a proxy fight with Automatic Data Processing Inc (ADP.O), will spend more time investing and stop being the firm’s No. 1 marketer, the people said.
Jana Partners Takes New Stake in Teva, Cheering Cost-Cut Plans (Bloomberg)
Jana Partners, the sometimes-activist fund run by Barry Rosenstein, built a new position in debt-laden drugmaker Teva Pharmaceutical Industries Ltd. in the fourth quarter of 2017, according to a letter to its investors.
Three Activist Hedge Funds to Watch (TheStreet)
In a year where some of the biggest names in activism—Nelson Peltz, David Einhorn, and Bill Ackman to name a few —had less-than-stellar returns, a few less-known activist hedge fund managers performed surprisingly well. Leading the pack was sometimes-activist investor Voce Capital Management‘s Daniel Plants, with 19% returns for the year, according to a person familiar with the situation. Also, real estate-focused Jonathan Litt and his Land & Buildings Investment Management returned 13.2% for 2017, while Ackman protégé, Scott Ferguson, and his Sachem Head Capital Management produced just under 13%, he said.
Toshiba Completes Sale of Westinghouse Claims, Replenishes Finances (Reuters)
TOKYO (Reuters) – Toshiba Corp (6502.T) said on Tuesday it has completed the sale of its claims against bankrupt U.S. nuclear unit Westinghouse Electric Co LLC, a move that allows the Japanese conglomerate to replenish its depleted capital base and remain listed. The $2.16 billion sale, to a group of hedge funds led by the Baupost Group, will also come with tax benefits and improves Toshiba’s balance sheet by about 410 billion yen ($3.7 billion).