Sound Point Capital Appoints Global Head of CLO Capital Markets and Structuring (Hedge Week)
Sound Point Capital Management, an alternative asset management firm with approximately USD21 billion of assets under management, has appointed Francis McCullough as Global Head of CLO Capital Markets and Structuring. McCullough joins Sound Point from Deutsche Bank, where he spent the past 16 years, most recently as Managing Director and Global Head of New Issue CLOs. While at Deutsche Bank, McCullough worked in both New York and London and was responsible for originating, structuring and syndicating collateralised loan obligations. He brings a wealth of experience in corporate debt securitisation and managing complex multi-party transactions.
Starboard Pressures EBay to Split Off Classifieds (Bloomberg)
Activist investor Starboard Value is ramping up pressure on EBay Inc. to separate its classifieds business and implement more aggressive operational targets, arguing the e-commerce company has not done enough to improve its performance. The New York-based hedge fund, which owns more than 1% of the company, wrote in a letter to the management and board that EBay hasn’t done enough in the nearly 12 months since agreeing to review its classifieds business along with ticket reselling business, StubHub, which was sold last year.
Ray Dalio Would Like More Control Over Media Reports About His Control Over Bridgewater (Deal Breaker)
For a decade, Ray Dalio has been publicly preparing for the motivational speaker and author stage of his life. As befits his much-ballyhooed approach to radical truth and transparency, a great deal of thought went into how this would be achieved, specifically how he’d loosen his reins on his hedge fund, Bridgewater Associates, until it was operating independently of him, as the well-oiled and Principled machine he had built. Of course, someone would have to hold the position of CEO until the singularity comes and the robots can just take over. But finding that person or persons have proven, uh, challenging, to say the least. At least four contenders for the throne have appeared.
Image By Monkey Business – Adobe
Billionaire Hedge-Fund Founder Lee Ainslie is Worried His Generation is Going to be Remembered as ‘the Generation of Greed’ (Business Insider)
Billionaire hedge-fund founder Lee Ainslie said that he believes his generation will be considered the “generation of greed” by young people. The founder of Maverick Capital, speaking at an Economic Club of NY Event in Midtown Manhattan, said the impact his age group has had on national debt and the environment is undeniable. While he said he is OK with paying higher taxes, he told the audience that he is not sure the government is the best method for redistributing wealth.
As Gaming Pauses at Sony, Cameras Flash (The Wall Street Journal)
Japanese giant’s decision to hold on to its image-sensor unit, against the recommendation of U.S. activist investors Third Point, is turning out well. Sony’s gaming business is on pause. Luckily, it has other units to pick up the slack. On Tuesday, the Japanese electronics and entertainment giant reported a 20% drop in operating income on almost flat revenue for the quarter through December. Both numbers beat analysts’ estimates on S&P Global Market Intelligence.
A Hedge Fund With 29% Return Record Is Shorting Tesla Bonds (Bloomberg)
As equity investors who bet against Tesla Inc. lick their wounds, the bond market is a different story. A hedge fund in Denmark that delivered a 29% return last year has stocked up on credit-default swaps on the world’s second-biggest automaker, based on a bet that its bonds are just too expensive. “It’s mispriced,” Daniel Pedersen, the chief investment officer at Asgard Credit Fund, said by phone. “Tesla could be upgraded to BB- during 2020, but even in that scenario the credit spread is still too tight.”
First Eagle Investment Management Completes Acquisition of THL Credit (Hedge Week)
First Eagle Investment Management (First Eagle) has completed its previously announced acquisition of THL Credit Advisors (THL Credit). First Eagle Alternative Credit, as the combination of First Eagle’s existing private credit platform and THL Credit is now known, focuses on both tradable credit and middle-market direct lending, with approximately USD23 billion in assets under management and advisement on a pro forma basis as of 31 December, 2019. First Eagle Alternative Credit’s robust product suite is available to sophisticated investors through public and private vehicles, separately managed accounts and commingled funds, including collateralised loan obligations.
Hedge Funds Hold Their Nerve on China, Seek Opportunities (Reuters)
SHANGHAI/NEW YORK (Reuters) – Hedge funds are holding their nerve on China’s ability to rebound quickly from a coronavirus outbreak that has rattled global markets, but many are also adding caveats as they try to predict the potential economic fallout. Mainland China stocks tumbled on Monday, when Shanghai and Shenzhen markets opened after an extended Lunar New Year break, wiping out nearly $700 billion in market capitalization.
Final Judgment Handed Down Against Investment Banking Analyst for Insider Trading (HedgeCo.Net)
(HedgeCo.Net) Bill Tsai, then a junior analyst in the New York office of a large international investment bank, learned through his work for the bank that Siris Capital Group was planning to acquire Electronics for Imaging, Inc. (EFII). Soon after learning about the deal, Tsai purchased EFII call options, which he sold for a profit of approximately $98,750 shortly after the deal was announced in mid-April 2019. Tsai agreed to settle with the SEC and consented to the entry of a judgment permanently enjoining him from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and ordering him liable to pay disgorgement of his ill-gotten trading profits, with interest, which will be offset by the amount of any forfeiture ordered against Tsai in a parallel criminal action.
Whistle-Blowers Should Fear Insider-Trade Ruling, Defendants Say (Bloomberg)
Two former Deerfield Management Co. partners convicted of insider trading with secret government information asked a U.S. appeals court to reconsider a ruling they claim threatens whistleblowers and good-government advocates who disclose wrongdoing by officials. Robert Olan and Theodore Huber, who traded health-industry stocks on the tips they got about Medicare reimbursement rates, on Monday asked the full federal appeals court in Manhattan to reconsider an earlier ruling by a three-judge panel, citing the “extraordinary consequences” if it’s not reversed.
Coca-cola Co (KO) President and COO Brian John Smith Sold $1.9 million of Shares (Guru Focus)
President and COO of Coca-cola Co., Brian John Smith, sold 32,808 shares of KO on 01/30/2020 at an average price of $58 a share. The total sale was $1.9 million. Coca-Cola Co is nonalcoholic beverage company which manufactures a variety of carbonated and noncarbonated brands, including Coca-Cola, Diet Coke, Fanta, Sprite, Minute Maid, Powerade, and Dasani. Coca-Cola Co has a market cap of $251.79 billion; its shares were traded at around $58.83 with a P/E ratio of 28.43 and P/S ratio of 6.94.
Tuesday 2/4 Insider Buying Report: EPD, SMPL (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. On Monday, Enterprise Products Partners’ Co-Chief Executive Officer, AJ Teague, made a $510,102 purchase of EPD, buying 20,031 shares at a cost of $25.47 a piece. So far Teague is in the green, up about 2.1% on their buy based on today’s trading high of $26.00. Enterprise Products Partners L.P. is trading up about 2.4% on the day Tuesday.
A Director at Cerus (NASDAQ: CERS) is Buying Shares (Analyst Ratings)
Yesterday, a Director at Cerus (CERS), Timothy Anderson, bought shares of CERS for $40K. This recent transaction increases Timothy Anderson’s holding in the company by 5.42% to a total of $802.5K. In addition to Timothy Anderson, 4 other CERS executives reported Buy trades in the last month.
