Hedge Funds

Carl Icahn Tacitly Admits That There Is No Joy In Herbalife Without Bill Ackman’s Pain

The greatest proxy slap fight in finance history is officially over, like really over… Carl Icahn’s Icahn Enterprises is finally taking some profits on its Herbalife winnings. On Friday the investor said he is lowering his stake in a securities filing. Just a few scant months after Bill Ackman gave in on his zero bet on Herbalife, Carl Icahn has decided that he no longer needs to hold all that weight in the health shake mega-business that is almost definitely not maybe a pyramid scheme. And Carl’s reasoning is sound: “Yesterday IEP tendered its Herbalife shares into the Company’s self-tender offer. Of the shares we tendered, at most only 11.4 million could possibly be purchased in the tender, which would still leave us as the Company’s largest shareholder with at least 34.3 million shares,...

Dan Loeb Going Into Fintech Because What Else Is He Gonna Do With All That Nervous Energy?

Last year, Dan Loeb bought $3.5 billion worth of Nestlé shares. This was apparently enough to give him one hell of a contact sugar high, because ever since then he’s been a little hyperactive. He’s very happy those Swiss master confectioners have seen the wisdom of his ways, but they need to do it faster faster faster faster now. In the meantime he’s been working on some great scripted drama pitches, spent a little too much time on social media and concocted what we can only assume is the mother of all Bill Ackman burns. Still, there was nervous energy left to burn off, so Dan Loeb got to work on a sizeable SPAC. And what else would a restless and overeager hedge-fund billionaire spend his $400 million blank check on than fintech? The hedgie behind Third Point is looking to raise $400 mill...

Bill Ackman’s Journey Of Growth And Change Leads Him To A $1 Billion Bet On A Troubled Retail Stock Run By A Guy From JC Penney

No story has warmed the cockles of our cold, black heart quite like the journey of self-discovery and improvement that has recently been undertaken by our pal, William Albert Ackman. After a rough few years, The Ack-Man has taken it upon himself to strip his mental house down to the studs and rebuild. Gone are the massive oversteps and attention-seeking mega bets that got him in trouble before. Bill Ackman 2.0 is not out there looking to be Bill Ackman, he’s a mindful investor looking to see what others aren’t. He doesn’t even have a driver any more for fuck’s sake. You can laugh at the old Bill Ackman for all his Don Quixote histrionics with losses in Family Dollar, Target and JC Penney. But the joke is on you going forward because the new Bill Ackman doesn’t make old mistakes… William Ac...

After Being Recorded Getting All Handsy With His CFO, Hedge Fund Manager Allegedly Got All Tackley With Her

We’ve leaned in sardonically on the whole notion that Wall Street’s #MeToo moment has been muted by the industry’s relative ability to act somewhat less monstrously than others. And that lessons learned during previous eras of sexual misconduct scandals have taught financiers the importance of keeping their hands to themselves, making everyone sign an NDA and paying people off to avoid real public embarrassment. Our whole thesis was always tongue-in-cheek, but we also thought that there was a sliver of truth in the joke. So thanks to Snow Park Capital’s Jeffrey Pierce for disabusing us of any notion that anyone in finance has [allegedly] learned anything… A former Manhattan hedge fund ​exec ​says ​her ex-boss repeatedly groped her, ​pressed her for sex and then viciously attacked her when ...

Carl Icahn Buys Stock, Retains Lawyer

Uncle Carl MAD. Last month, Carl Icahn bought some stock. He would like to keep this stock. The company, AmTrust Financial, does not want him to keep the stock. It would like to buy the 9.4% of its stock that Carl Icahn owns as part of the $2.7 billion going-private deal. Carl Icahn does not think this is a very good deal for public shareholders like himself. The Karfunkel and Zyskind families, who control AmTrust and would like to buy the rest of it, along with a private equity firm, and who presumably think this is a pretty good deal for them, know that Carl Icahn does not like the deal. So they’ve decided that, in spite of the fact that Carl Icahn owns nearly a tenth of AmTrust, he shouldn’t get a say in whether the deal is made. Mr. Icahn said AmTrust “stealthily” set a record date of ...

Rising Hedge Fund Star Collapses Into Frigid Hedge Fund Black Dwarf

Four years ago, a trio of Highbridge Capital Management hotshots got together and founded a telecom, media, technology and consumer hedge fund that quickly garnered $100 million. The year after that, Institutional Investor named one of them, CEO Adam Bernstein, a “Hedge Fund Rising Star,” who crowed that he planned to make Pagoda Asset Management an “institutional-quality hedge fund that would generate superior, risk-adjusted returns for investors.” Any guesses where this is going? Returns since then have been modest, climbing 1.4 percent in 2016 and 3.3 percent last year. The firm is up 1.1 percent this year… And next year, there will be no returns at all. Hedge fund Pagoda Asset Management is shutting down at the end of the month…. Pagoda notified investors of its decision to shut down b...

David Tepper Bought A Football Team With Apple Profits

A year ago, David Tepper and several of his ilk were of the opinion that Apple shares had gone about as far as they were gonna go, which is to say to $150, and sold some. Then he had a change of heart and starting buying again, and buying a lot, building up a tidy 4.6 million share position. And he’s sure glad he did, and that he was wrong about Apple not being a $150 stock, because during the first quarter, when he unloaded all of them, it was more like a $180 stock. Those profits sure did come in handy, because at the same time he was selling the shares, he was buying a $2.2 billion football team. At Tuesday’s prices, the sale of 4,587,852 shares would be worth more than $853 million…. Tepper likely saw a hefty profit thanks to the appreciation of Apple even in recent months. Since Novem...

Ray Dalio No Fan Of Trump Tariffs, Big Fan Of Profiting From Them

In the spirit of radical transparency, Ray Dalio would probably admit that he doesn’t have the first goddamned clue what our clown president is doing. He’s certainly more than a little mystified by Trump’s trade “policy,” and especially the tariffs seemingly designed to provoke the Chinese into a trade war. But Ray Dalio knows the Chinese, and he’s pretty sure they’re not as stupid or reckless or unmoored as Donald Trump, which is why he’s fairly confident in saying that the “actual impacts of the tariffs… will be very small.” That being said…. Cleveland-Cliffs Inc., the top U.S. iron-ore producer, is reaping the gains from U.S. President Donald Trump’s steel tariffs…. Bridgewater added 1.89 million shares to his holdings, the second-largest position increase in his portfolio of U.S. liste...

The Poached Becomes The Poacher

A couple of years ago, Ken Griffin had a little bit of friendly advice for his buddy Steve Cohen, who—potentially on account of the unfortunateness—was having a little trouble finding non-idiots to yell at and humiliate. That advice was, “take it from somebody else,” with the unspoken addendum of “especially if they’re having some reputational problems… oh, wait, you can’t. Sorry.” History has not recorded Cohen’s undoubtedly understated and not-at-all roaring spit-geyser reaction to that bit of Windy City shade-throwing. Suffice it to say he was only too happy to take Griffin’s advice in staffing up his burgeoning quantitative efforts with one of Ken’s own. And now that KG is having his own staffing issues, the Big Guy would like to note that he’s having to beat the top-notch talent flock...

David Tepper’s Brass Balls Are Coming To Carolina

For the first 59 years of his life, David Tepper was rarely too far from his native Pittsburgh. He went to college and business school there, then briefly moved across the Ohio border to do some accounting for a steel company. He then shifted 550 miles to the east for a quick stint in Boston, before deciding it was too far from the Steel City (and certainly not lucrative enough to be so distant from Three Rivers Stadium) and he planted himself along the Hudson River, where he stayed for three decades, got rich and took revenge and decorated his office and bought a piece of his beloved Steelers. Over the past few years, however, Tepper’s life has been changing rapidly. He split from his wife of 30 years and relocated to sunnier, tax-friendlier climes. With everything else up in the air, eve...

Dan Loeb Can Hardly Restrain His Excitement At All Of The Suck Out There

A little more than a year ago, Dan Loeb was feeling pretty good about things. This is not the usual state of affairs, for it is much more within the Third Point founder’s ken to identify those things that suck—the former president of the United States, for instance, and central banks, and most corporate management, and of course Bill Ackman. Now, he didn’t know what, exactly, to make of the then-new president of the United States, but he was pretty sure the White House reality show would at the very least shake things up. And even though it hasn’t really done anything, it has done that, which means there’s a lot more suck in the market for Dan Loeb to make money on. (Which he hasn’t otherwise been doing.) Following a quarter in which his two flagship funds posted losses, the head of Third ...

Ray Dalio Doesn’t Have To Be Right For Bridgewater To Make Money

Ray Dalio (Getty Images) “It is OK to Make Mistakes.” It says so right there in Principle no. 8. “Innovative thinkers are going to make mistakes,” adds no. 9. “Do not feel bad about your mistakes or those of others,” teaches no. 10, which goes on to urge you to “Love them!” The mistakes, that is. And why wouldn’t Ray Dalio love mistakes? This most innovative of thinkers has been making a bunch of them lately. Guess what? Doesn’t matter: Bridgewater’s doing fine in spite of them. Or is it because of them? I really need to get in synch. The investment firm has gained about 4 percent in its Pure Alpha fund in the first four months of this year after a 1 percent loss last month, the person said, asking not to be identified because the information is private. Hedge funds on average returned abo...

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