Hedge Fund News: Ray Dalio Lesson 101, Dan Loeb & Larry Robbins

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Hedge fund investor Loeb takes stake in Nokia (TelecomPaper)
Hedge fund investor Daniel Loeb has acquired a stake in Nokia Corporation (ADR) (NYSE:NOK) and said he sees good prospects for the company after the planned sale of its handset activities to Microsoft Corporation (NASDAQ:MSFT). Loeb said in a letter to investors in his Third Point hedge fund that he expected Nokia to distribute a “meaningful portion” of the handset business sale proceeds “in coming quarters”, the Financial Times reports. He did not reveal the size of the stake that Third Point has taken in Nokia. Nokia is expected to have close to EUR 8 billion in net cash after it completes the EUR 5.4 billion sale to Microsoft.


Hedge fund king Dalio tells how it all works on YouTube (BusinessTimes)
TAKE a look at the lessons in Dalio 101. Ray Dalio, the 64-year-old founder of Bridgewater Associates, the largest hedge fund in the world with some US$150 billion under management, has quietly begun teaching his investment secrets on YouTube. Mr Dalio, who is said to be worth some US$13 billion, was one of the few investors to see the financial crisis of 2008 developing, and perhaps just as important, the rebound. He’s made his money by predicting big macroeconomic cycles. His economic theories, up until now, have been known only to a small group of investors and those willing to pay his firm 2 per cent management fees and 20 per cent of the investment profits.

Big Hedge Fund Investors Are Abandoning JC Penney (Forbes)
The era of J.C. Penney Company, Inc. (NYSE:JCP) being a plaything for bigfoot hedge fund investors appears to be coming to a close. The struggling retailer has humbled some of the biggest names on Wall Street—handing them losses and leaving them with egg on their faces after they bet that the company could stage something of a rebound. Larry Robbins, whose Glenview Capital hedge fund had been on a roll until it became one of the biggest shareholders of JC Penney, reportedly has sold off part of its stake in JC Penney.

Hedge Funds Revealing Puerto Rico Too Cheap to Fail: Muni Credit (BusinessWeek)
Hedge funds such as Maglan Capital LP and MeehanCombs LP are helping fuel a rally in Puerto Rico debt, signaling that investors who have the most appetite for risk expect the worst may be over for the commonwealth’s bonds. As yields on obligations of the struggling U.S. territory soared to records in recent weeks, David Tawil, 38, co-founder of New York-based Maglan Capital, has been buying. The purchases mark the first foray into municipal debt for the fund, which typically focuses on distressed U.S. companies. The moves add demand to the $3.7 trillion municipal market at a time of record withdrawals by individuals.

Investor Ader turns to full-time activism with new firm (Reuters)
Former Wall Street gaming analyst Jason Ader tried his hand at activism this year, going to battle with a U.S slot-maker International Game Technology in a successful campaign to win a board seat for his firm. Now he appears to be making a deeper commitment to activist investing. Ader has merged his Ader Investment Management with hedge fund Cumberland Associates to form a new activist firm called Owl Spring Asset Management, the company is scheduled to announce Wednesday.

The world is in ‘gigantic asset bubble’: Faber (CNBC)

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