Illumina CEO DeSouza Resigns After Proxy Battle with Icahn (Reuters)
Illumina (ILMN.O) CEO Francis deSouza stepped down on Sunday, marking a victory for activist investor Carl Icahn and heightening expectations that it could unwind its controversial $7.1 billion acquisition of Grail (GRAL.O). The gene-sequencing machine maker had repurchased Grail, a cancer diagnostic test maker, in 2021 despite opposition from U.S. and European antitrust regulators – a decision that prompted Icahn to pursue a proxy fight at Illumina, arguing it should be divested as it had cost investors billions of dollars.
‘Buffett Effect’ Is Making Occidental’s Stock Trade Like Exxon’s (Bloomberg)
Warren Buffett is shielding Occidental Petroleum Corp. from the worst of the drubbing hitting oil and gas producers and making the stock trade like fossil fuel firms more than five times it size. For much of the past year, the billionaire investor’s Berkshire Hathaway Inc. has been snapping up Occidental stock whenever it falls under $60, a level shares closed below on Friday as crude prices slid. Buffett’s firm is the largest stockholder with nearly 222 million shares, almost a 25% stake, according to data compiled by Bloomberg — and regulatory permission to buy more.
The Soros Era Is Over on Wall Street (The Wall Street Journal)
George Soros has handed the reins of his empire to his 37-year-old son, Alex, marking the end of an era on Wall Street. For decades, Soros’s moves were scrutinized, followed and sometimes even imagined by rival traders. Soros, who ran the Quantum Fund, one of the most successful hedge funds in history, traded stocks, bonds and currencies all over the world, becoming a pioneering ‘global macro’ investor. He built a fortune in the 1970 and 1980s making big bets that anticipated economic and political shifts. Mere hints of what Soros might be doing affected global markets, even when they proved false. Governments criticized him as a speculator hurting economies.
Image by Gerd Altmann from Pixabay
Hudson Bay Expands $20 Billion Hedge Fund Business to Dubai (Gulf News)
Hudson Bay Capital Management is opening an office in Dubai, joining the likes of Balyasny Asset Management and ExodusPoint Capital Management in expanding to the Middle Eastern business hub. The Greenwich-based multi-strategy investment firm, which manages about $20 billion, has hired Chiara Chabanne as senior executive officer and its first portfolio manager in the region, according to a person with knowledge of the matter. She will start on Monday and will be supported by Antoine Chabanne, the person said, asking not to be identified because the matter is private.
US Hedge Fund Anticipates a Billion Plus for Sale of Travelodge (HospitalityAndCateringNews.com)
London’s money markets are predicting Travelodge will go on the market soon with the price of the budget hotel chain costing the acquirer circa one billion pounds. Travelodge was acquired in 2012 by US hedge fund GoldenTree that is now mulling a sale, the price tag being reported in part being set by a post-pandemic boom in demand. Travelodge is benefiting from an increased volume of cost conscious holidaymakers fuelling a boom in UK holidays. The hotel group also cites increased demand from business travellers looking for lower cost stays.
Odey Asset Management Sets Out Replacement Plans for Crispin Odey (Reuters)
Odey Asset Management is not considering imposing exit restrictions on investors in any of its funds, a spokesperson said, as partners seek to sever ties with founder Crispin Odey following allegations of sexual misconduct against him. The Financial Times reported on Sunday that Odey Asset Management had been discussing imposing restrictions or gating some EU retail funds as part of emergency measures to manage an investor exodus, citing people with knowledge of the talks.
Hedge Funds Raise Stakes in Fight Over Dealer Rule (Risk.net)
Alternative investment trade bodies have joined one of several court battles that could influence a controversial plan by US regulators to require more firms to register as securities dealers. Industry groups Aima and the MFA separately filed legal documents with a US federal court last week in the case SEC v Justin Keener. The groups are hoping for a legal toehold that could strengthen future challenges to the Securities and Exchange Commission’s proposal to widen the scope of its dealer.
Redemptions Continued for Hedge Funds to Begin Q2 2023 (Opalesque)
Opalesque Industry Update – April was another month of net outflows for the hedge fund industry, though as is frequently the case there are both negative and positive themes which make up the overall picture, said eVestment. In terms of continuing themes, the multi-strategy segment remains a leader, while redemptions continue within long/short equity, but it’s where change is happening that defined April’s significance. Within macro and managed futures is where the most short-term change is evident, while within the event driven space a new normal has been steadily unfolding. The sum of these parts remains aggregate redemption pressure on the hedge fund industry, though it is important to see within the data there are managers and strategies able to raise capital, and many able to produce solid returns for investors.
Monday 6/12 Insider Buying Report: GWRS, SRCL (Nasdaq.com)
At Global Water Resources, a filing with the SEC revealed that on Thursday, Director Andrew M. Cohn bought 30,000 shares of GWRS, for a cost of $12.07 each, for a total investment of $362,100. So far Cohn is in the green, up about 3.1% on their buy based on today’s trading high of $12.45. Global Water Resources is trading up about 1.9% on the day Monday. Before this latest buy, Cohn bought GWRS at 5 other times during the past year, for a total cost of $1.59M at an average of $13.40 per share. And on Wednesday, EVP & Chief People Officer Joseph Anthony Reuter bought $308,619 worth of Stericycle, buying 7,000 shares at a cost of $44.09 each. Stericycle is trading up about 0.3% on the day Monday. Reuter was up about 3.4% on the purchase at the high point of today’s trading session, with SRCL trading as high as $45.59 at last check today.
Nike, MGM Resorts And 2 Other Stocks Insiders Are Selling (Benzinga)
NIKE: The Trade: NIKE, Inc. (NKE) EVP, CFO Matthew Friend sold a total of 9,210 shares at an average price of $107.50. The insider received around $990.08 thousand from selling those shares. MGM Resorts International: The Trade: MGM Resorts International (MGM) CHIEF LEGAL ADMIN OFC AND SECY John McManus sold a total of 10,000 shares at an average price of $41.31. The insider received around $413.14 thousand from selling those shares.
