Hedge Fund Bear Crispin Odey Made $18 Million Betting Against Wirecard (Bloomberg)
Hedge fund manager Crispin Odey’s winning run with his short-selling bets continued this week as wagers against digital payments company Wirecard AG paid off. Odey Asset Management made an estimated $18 million, at least on paper, on Wednesday when Wirecard shares were battered by allegations of executive fraud. In its largest disclosed short by value, the hedge fund reported a $131.8 million position as of Jan. 30 betting that Wirecard would drop, according to data compiled by Bloomberg.
Activist investor Paulson raises stake in Britain’s Premier Foods (Reuters)
(Reuters) – Paulson & Co., the hedge fund firm led by billionaire investor John Paulson, has upped its overall interest in Britain’s Premier Foods Plc to 11.9 percent, a regulatory filing reut.rs/2WyWn6J showed on Friday. The activist investor’s move comes a little over two months after the Bisto gravy and Oxo-cube maker said Chief Executive Officer Gavin Darby would be stepping down, following a shareholder revolt, led by activist hedge fund Oasis Management, that called for a management overhaul.
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Bridgewater’s Self-Obsession Actually … Works? (Bloomberg)
Eileen Murray, the co-chief executive officer of Bridgewater Associates, spoke at a hedge fund conference this week, and someone in the audience had the nerve or naivety or lack of imagination to ask her about investments. This guy – presumably a hedge fund manager or allocator – had the chance to put a question to the co-head of the largest hedge fund in the world, and he wasted it on asking “what percentage of Bridgewater’s equity investments are in internet/technology companies.” As though anyone at Bridgewater would ever deign to talk about something so pedestrian as sector allocation of equity investments! Obviously she declined to answer.
Hedge Fund RenTech Created the Ultimate, Tax-Free IRA Account for Employees (Bloomberg)
Renaissance Technologies, the giant hedge fund founded by billionaire Jim Simons, looks like it has created the premier, tax-free retirement account for its employees. A deft maneuver back in 2012 enabled employees to invest in RenTech’s storied Medallion Fund via individual retirement accounts, or IRAs, which provide tax benefits for millions of ordinary Americans savers who are putting money aside for their golden years.
Einhorn’s Greenlight Soars 13% in Firm’s Best-Ever January (Bloomberg)
David Einhorn is starting the year on a high note as he looks to avoid a repeat of his hedge fund’s poor performance in 2018. Greenlight Capital’s main fund rose 13.4 percent to post the best January in its 23-year history, according to an investor update viewed by Bloomberg. Einhorn also beat the broader equity market and industry peers. The S&P 500 Index returned 8 percent with dividends, while the HFRX Global Hedge Fund Index, an early indicator of industry performance, climbed 1.7 percent through Jan. 29.
Central Park Penthouse Sets Record at Nearly $240 Million (The New York Times)
There were other pricey closings in Manhattan’s new luxury skyscrapers in January, but all were dwarfed by the hedge fund manager Kenneth Griffin’s deal. The country’s most expensive home sale is now officially in the record books. Kenneth Griffin’s much-anticipated penthouse purchase at 220 Central Park South in Midtown Manhattan was recorded Jan. 25 with the New York City Registrar — just two days after representatives for the hedge fund manager and Vornado Realty Trust, the developer, signed the closing documents.
Willis Towers Watson Calls for Change in Hedge Fund Industry (HedgeWeek)
Investors must change their approach to hedge funds amid structural headwinds facing the industry, according to a new research paper by Willis Towers Watson. In its paper, ‘The New Way’, Willis Towers Watson argues that the competitive advantage delivered by hedge funds is being eroded by structural, rather than just macroeconomic, constraints; principally the industry’s focus on “enterprise risk” rather than investment risk.
Friday 2/1 Insider Buying Report: ORIT, SONA (Nasdaq.com)
As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy – they expect to make money. So let’s look at two noteworthy recent insider buys. At Oritani Financial Corp (ORIT), a filing with the SEC revealed that on Wednesday, Director Judith Schumacher-Tilton purchased 10,000 shares of ORIT, at a cost of $17.00 each, for a total investment of $170,003. Oritani Financial Corp is trading up about 1.2% on the day Friday. Before this latest buy, Schumacher-Tilton bought ORIT on 2 other occasions during the past twelve months, for a total investment of $119,571 at an average of $14.95 per share.
Discover Financial CEO Is Buying Up Stock (Barron’s)
Discover Financial Services (ticker: DFS) President and CEO Roger C. Hochschild opened up his wallet on Monday and bought $2 million of the company’s stock on the open market. Hochschild bought 30,000 shares at an average per-share price of $66.67, he disclosed in a form he filed to the Securities and Exchange Commission. He made the purchase a few days after Discover reported fourth-quarter earnings that missed expectations. The CEO now owns 834,799 shares in his personal account and another 29,111 shares through a trust…
Daily Insider Ratings Roundup 1/30/19 (SeekingAlpha)
Tables of the top insider purchases and sales filed with the SEC on 1/30/19, based on dollar value. Dollar values often do not equate with significance when it comes to insider trades. Proprietary Insider Company Ratings are relayed to clarify significance. This idea was discussed in more depth with members of my private investing community, Daily Insider Ratings.
