U.S. Federal Pension Insurer Backs Eddie Lampert’s Bid to Buy Sears (The Wall Street Journal)
Sears Holdings Corp. Chairman Eddie Lampert won the support of the U.S. government’s pension insurer for his $5 billion buyout proposal, a critical vote in his favor as he vies with other creditors who want Sears liquidated. Sears lawyer Ray Schrock told a bankruptcy judge Thursday that the Pension Benefit Guaranty Corp. had resolved its $1.7 billion claim against the company and would back Mr. Lampert’s proposal to buy hundreds of stores out of bankruptcy.
AQR: Returns Are Gonna Suck For The Next Decade, Unless We Are Wrong, In Which Case They Are Gonna Really, Really Suck (DealBreaker)
Last year, the whiz-kids at AQR Capital Management ran their new streams of big data and everything else through the As-Bot and got an unpleasant surprise: Nothing was gonna return even 5% over the next five to 10 years. For masochism or science or whatever, they decided to do it again this year. And while stocks outside of the U.S. broke the 5% barrier, it wasn’t exactly something to celebrate, least of all for AQR.
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Pernod Hits Back at Activist Elliott as Stock Hits Record High (The Wall Street Journal)
PARIS—Pernod Ricard SA chief Alexandre Ricard defended against criticism from activist investor Elliott Management Corp., setting out his own plan to boost profit at the maker of Chivas Regal whisky and Absolut vodka. The French drinks giant has been under pressure since Elliott took a 2.5% stake in December, saying Pernod had “significant room for improvement” and calling for better profit margins and governance. Mr. Ricard says Pernod is making progress on both fronts.
CEOs are Ppening Their Boardrooms to Hedge Fund ‘White Squires’ to Keep Other Activists Out (CNBC)
When it comes to defending a company against an agitated investor, the devil you know may be better than the devil you don’t. That’s the recent mindset among corporations and investors alike when it comes to fending off potential intruders – and it’s increasingly blurring the lines of how management views the role of activist investors. Case-in-point is Papa John’s International. On Monday, the pizza maker announced that Starboard Value, led by Jeffrey Smith, would be investing as much as $250 million, and named Smith as chairman.
Hedge-fund Manager Doug Kass Says Stock-market Bulls Need to Wake Up (MarketWatch)
Just keep swimming. That’s been the message for investors these days. Stay afloat because we’ve had the best start for stocks since 1987. A mixed bag of earnings, another potential government shutdown and questions over a trade deal haven’t triggered an “everyone-out-of-the-pool” moment. Yet. But welcome to Thursday, where things are looking more jittery than they have in awhile, a day after the S&P 500 parted ways with a 5-day winning run. Worry lines are all over our call of the day, from Doug Kass, president of hedge fund Seabreeze Partners Management, who warns that “bull market complacency is back.” Blogging at Real Investment Advice, Kass says investors are ignoring a “diminished outlook for economic and profit growth in 2019-2020,” noting that “there was nothing in the recent high-frequency data or earnings reports that changes this outlook.”
It’s a Billionaire Bounce Back as Einhorn, Ackman, and Edelman All Post Good January Returns, After a Brutal 2018 (Business Insider)
For several well-known funds, the start of 2019 has helped wash off the stink of last year, as big-name managers like David Einhorn, Bill Ackman, Joseph Edelman and Dmitry Balyasny all finished January with positive returns. The overall hedge fund industry had one of the best months in its history, returning 4% on average, after declining 2.2% in December, according to data tracker eVestment. With calls to increase taxes on the wealthiest and outrage at former Starbucks CEO Howard Schultz’s presidential aspirations, 2019 has not been kind to billionaires so far.
Thursday 2/7 Insider Buying Report: T, JPM (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 AT&T (T), a filing with the SEC revealed that on Monday, Director Geoffrey Y. Yang bought 33,558 shares of T, for a cost of $29.79 each, for a total investment of $999,535. Bargain hunters have the opportunity to buy T at a price even lower than Yang did, with shares changing hands as low as $29.12 in trading on Thursday – that’s 2.2% under Yang’s purchase price. AT&T is trading down about 1.2% on the day Thursday. Before this latest buy, Yang purchased T on 2 other occasions during the past year, for a total cost of $2.49M at an average of $30.42 per share.
Thursday’s Insider Report: This Blue-chip Dividend Stock has Four Trading Its Shares (TheGlobeAndMail.com)
Featured below are companies that have experienced recent insider trading activity in the public market through their direct and indirect ownerships, including accounts they have control or direction over. The list features insider transaction activity; it does not convey total ownership information as an insider may hold numerous accounts. Keep in mind, when looking at transaction activities by insiders, purchasing activity may reflect perceived value in a security. Selling activity may or may not be related to a stock’s valuation; perhaps an insider needs to raise money for personal reasons.
Bank Royal Commission Insider Trading Claim is ‘Bulls–t’ (AFR.com)
Speculation in the media and being fuelled by Labor about potential insider trading in bank shares on Monday ahead of the royal commission report’s public release is, in the words of one well-placed official source, almost certainly “bulls–t”. Labor’s financial services spokeswoman, Clare O’Neil, has publicly released a letter she sent to the head of the Department of Prime Minister and Cabinet, Martin Parkinson, requesting an investigation into an alleged $500 million bet on bank shares at 11am on Monday, five hours before the report was released, that reportedly yielded a quick $22 million profit.
With the $3 Billion Alternative Data Industry Exploding, Hedge Fund Managers Fear a Crackdown Could be Coming (Business Insider)
As hedge fund managers seek out ways to beat the market, they’re increasingly turning to alternative data providers to identify trends before their competitors. But with information like satellite images and credit card transactions already well-used throughout the industry, some managers are wading into potentially risky territory as they seek out cutting edge data. Lawyers say a few steps can protect managers, including questioning a data provider’s sources.
Estee Lauder Companies Inc (NYSE:EL) Insider Trading Activity – EVP Sold 46,233 shares of Stock (MarketExclusive.com)
Insider Trading Activity For Estee Lauder Companies Inc (NYSE:EL): Gregory Polcer , EVP of Estee Lauder Companies Inc (NYSE:EL) reportedly Sold 46,233 shares of the company’s stock at an average price of 152.31 for a total transaction amount of $7,041,748.23 SEC Form. Insider Trading History For Estee Lauder Companies Inc (NYSE:EL): On 12/3/2012 Fabrizio Freda, CEO, sold 4,751 with an average share price of $60.00 per share and the total transaction amounting to $285,060.00. On 12/4/2012 Zinterhofer Aerin Lauder Trust, Major Shareholder, sold 300,000 with an average share price of $59.09 per share and the total transaction amounting to $17,727,000.00.
