Oaktree, Elliott Among Bargain Hunters Circling Mortgage Trusts (Bloomberg)
Americans hurt by the coronavirus pandemic are skipping home-loan payments, and the trusts that own the mortgages are feeling the pain. Opportunistic funds have noticed. Among the investors in talks to buy discounted assets in the distressed real estate investment trusts are Paul Singer’s Elliott Management Corp. and Appaloosa Management, run by David Tepper, according to people involved in the deals who asked not to be identified discussing private transactions. Apollo Global Management Inc. and Howard Marks’s Oaktree Capital Group are also among interested investors, the people said.
Billionaire Bill Ackman Plowed More Than $200 million into Warren Buffett’s Berkshire Hathaway After the Coronavirus Sell-off (Business Insider)
Billionaire investor Bill Ackman bought more than $200 million worth of Berkshire Hathaway stock after the novel coronavirus ravaged stock markets, signaling his confidence in Warren Buffett‘s conglomerate. “Berkshire Hathaway was built by Warren Buffett to withstand a global economic shock like this one,” Ackman said in Pershing Square’s 2019 annual report, published this week. The hedge fund boosted its stake in Berkshire by 39% last month using some of the $2.6 billion windfall from its coronavirus hedges, Ackman said in the report. It also added to its investments in Hilton, Lowe’s, and Burger King-parent Restaurant Brands, and bought back into Starbucks.
Kansas City Employees Redeems $19 million AQR Hedge Fund Investment (Pensions&Investment)
Kansas City (Mo.) Employees’ Retirement System redeemed its $19 million investment in a diversifying hedge fund managed by AQR Capital Management. The $1.1 billion pension fund temporarily reallocated the assets from the redemption from the AQR Delta XN Offshore fund into its investment in the BlackRock Market Advantage Fund, which currently has $36 million in its portfolio, said Barbara Davis, executive director, in an email. Both portfolios are in the pension fund’s opportunistic investment allocation, which is currently 10%, Ms. Davis said.
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Coronavirus Market Devastation Reveals Hedge Fund Strategy Successes and Failures (BeInCrypto.com)
The past month has seen radical changes in nearly every financial sector. Bonds, commodities, stocks, and Bitcoin have all experienced dramatic swings in value during the Coronavirus-induced crisis. This is also true of hedge funds, as the market has tested the mettle of various management investment strategies. While some have seen dramatic losses due to the virus, others have managed excellent returns. Coronavirus Crushes Major Hedge Funds: One notable point of failure is the PointState Hedge Fund, managed by Zach Schreiber. To date this year, the fund has already lost 9.5%, leaving investors desiring to redeem funds.
Starbucks Rises After Bill Ackman Reinvests $720 Million (The Street)
Starbucks (SBUX) – shares got a boost from activist investor Bill Ackman, who reestablished a position with the coffee retailing giant with a stake valued at about $720 million. Shares of the Seattle company at last check were 5.4% higher at $71.47. “In advance of recent market declines, in January we sold our stake in Starbucks as it approached our estimate of intrinsic value,” Ackman’s Pershing Square hedge fund said in its 2019 annual report. Pershing sold off its position in Starbucks in January, the report said.
The Story Behind CABA’s March Performance (Hedge Nordic)
Stockholm (HedgeNordic) – The Nordic hedge fund industry has taken a hit in the broad sell-off across markets in March, with the Nordic Hedge Index on track for the biggest monthly decline on record. Some hedge funds, however, have performed very well amidst the carnage. Copenhagen-based fixed-income hedge fund CABA Hedge navigated well through the storm, gaining 5.6 percent in March.
Toshiba Should Sell Stake in Ex-chip Unit at IPO, Says HK Activist Fund in Letter (Reuters)
TOKYO (Reuters) – A Hong Kong-based activist investor in Toshiba Corp (6502.T) has asked the Japanese conglomerate to sell its entire stake in Kioxia Holdings when the flash memory chip firm is listed in an IPO that could raise up to $32 billion, according to a letter reviewed by Reuters. Argyle Street Management Ltd., a hedge fund with over $1.5 billion under management, sent the letter to CEO Nobuaki Kurumatani in late March urging the company to sell its 40% stake and distribute proceeds back to shareholders.
Bityard Launches with Hedge Fund Backing (Hedge Week)
Bityard, a digital contract trading platform, has officially launched having received a strategic investment from a US hedge fund worth USD10 million. Bityard, which was founded in November 2019 and is headquartered in Singapore, is regulated by the American Money Services Businesses, Singaporean Accounting and Corporate Regulatory Authority (ACRA), and the MTR of Estonia for the European Union. In Southeast Asia, Bityard will strive to keep up with local digital asset market demand, especially with regards to government-driven blockchain trends.
Tuesday 4/7 Insider Buying Report: HDS, RGP (Nasdaq.com)
At HD Supply Holdings, a filing with the SEC revealed that on Friday, Lauren Taylor Wolfe bought 267,584 shares of HDS, for a cost of $26.23 each, for a total investment of $7.02M. Wolfe was up about 19.9% on the buy at the high point of today’s trading session, with HDS trading as high as $31.44 in trading on Tuesday. HD Supply Holdings Inc is trading up about 6.3% on the day Tuesday. Before this latest buy, Wolfe purchased HDS on 2 other occasions during the past twelve months, for a total investment of $31.75M at an average of $34.73 per share. And at Resources Connection, there was insider buying on Friday, by CEO Kate W. Duchene who bought 10,000 shares for a cost of $10.04 each, for a total investment of $100,400. This purchase marks the first one filed by Duchene in the past twelve months. Resources Connection is trading up about 9.3% on the day Tuesday. Duchene was up about 10.4% on the purchase at the high point of today’s trading session, with RGP trading as high as $11.08 at last check today.
A Director at Carnival (NYSE: CUK) is Buying Shares (Analyst Ratings)
Today, a Director at Carnival (CUK), Randall Weisenburger, bought shares of CUK for $10M. This recent transaction increases Randall Weisenburger’s holding in the company by 997.19% to a total of $12.85 million.
Petmed Express Inc (PETS) CEO & President Menderes Akdag Sold $900,000 of Shares (Guru Focus)
CEO & President of Petmed Express Inc., Menderes Akdag, sold 30,000 shares of PETS on 04/06/2020 at an average price of $30 a share. The total sale was $900,000. PetMed Express Inc is a nationwide pet pharmacy. The Company markets prescription and non-prescription pet medications and other health products for dogs, cats, and horses direct to the consumer.
Which Politicians Were Accused Of Insider Trading Related To The COVID-19 Pandemic? (WorldAtlas.com)
Some politicians sold travel stocks before the COVID-19 pandemic, which has resulted in speculation of wrong-doing. A time of crisis can bring out the best in people. Neighbors pick up other’s groceries and deliver them, free of charge, to doorsteps down the street. Friends check in on the elderly and vulnerable, we donate money, share inspiring stories of goodwill at the end of the day, and band together to protect their communities from the worst. Emergency situations can also bring out the panic-button response in us, however, and for some, that spells trouble. This trouble happened earlier this March in connection with the coronavirus and stocks.
