Third Point Announces Proxy Contest at Bath & Body Works in Letter to Board (Reuters)
Third Point told Bath & Body Works on Wednesday that it plans to launch a proxy contest and that the company’s recent board refresh does not adequately address the hedge fund’s concerns about governance, capital allocation and pay. “As fiduciaries, we have no choice but to put forth qualified director candidates and give our fellow shareholders the opportunity to elect directors who can hold the stewards of their capital responsible for the decisions they make,” Third Point founder Daniel Loeb wrote in a letter to the company’s board.
D.E. Shaw Racks Up $1.1bn Across Two New Funds (Opalesque.com)
The D. E. Shaw group, a global investment and technology development firm, has raised $1.1bn across a pair of new funds. The US manager, a large multi-strategy player with more than $60bn across its investment range, said in a press release that two new funds, D. E. Shaw Voltaic Fund, and D. E. Shaw Diopter Fund, are focused on private market investment opportunities. The firm’s entities, principals, and employees contributed more than $150 million in total to the new funds. These fundraises represent the latest milestone in the long-term buildout of the firm’s private investing strategies, said the release.
Strong Performance for Keva’s Hedge Fund Portfolio (Hedge Nordic)
Stockholm (HedgeNordic) – Finland’s largest pension fund Keva saw its hedge fund, private equity, and real estate investments offset some of the losses stemming from fixed-incomed and listed equity investments in 2022. Keva’s hedge fund investments, which accounted for 7.2 percent of its €62 billion investment portfolio at year-end 2022, generated a return of 6.1 percent last year after delivering a return of 17.3 percent in 2021.
Photo by Austin Distel on Unsplash
BlackRock Still Manages $4 Billion of Texas Assets Despite Divestment Vows (Bloomberg)
BlackRock Inc. manages more than $4 billion in funds for the biggest public pension in Texas, undercutting claims by Republican Governor Greg Abbott that the state has cut ties with the world’s largest asset manager because of its advocacy of sustainable investing. The Teacher Retirement System of Texas sold all its shares in BlackRock by the end of 2022 to comply with a state law that prohibits government entities from directly investing in finance firms that are deemed to “boycott” the fossil fuel industry. However, the TRS still uses BlackRock to manage about $4 billion of its assets — or about 2.2% of the $179.7 billion total — according to documents obtained by Bloomberg News under public records laws.
Why Some Fund Managers Prefer Dividends Over Share Buybacks (Forbes)
Now that the full extent of the market rout in 2022 is coming into view, some investors are reassessing their strategies and, in some cases, starting to consider dividend stocks and dividend-focused funds. Record dividend payments in 2022: It’s no secret that 2022 was a bleak year for stock returns. However, companies in the S&P 500 paid out a record $565 billion in dividends throughout the year. Data from S&P Dow Jones Indices reveals that dividend payouts from the index grew an impressive 10% year over year.
Standard General Says Only FCC Approval Left for Tegna Deal (Reuters)
Hedge fund Standard General said on Tuesday that its proposed acquisition of TV station operator Tegna Inc (TGNA.N) only needs the approval of the Federal Communications Commission after the U.S. Department of Justice reviewed it without mounting any challenge. Standard General added it now expects the deal with Tegna to close in March or April, subject to approval by the Federal Communications Commission.
Microsoft, Amazon, Meta Most Favoured by Hedge Funds (AFR.com)
Technology stocks dominate the most owned stocks by hedge funds, according to an analysis by Goldman Sachs, with Microsoft, Amazon, Meta Platforms and Alphabet the top four. Uber Technologies, Apple and Netflix also were among the top 10, with Visa, Activision Blizzard and Mastercard representing the balance. These “stocks that matter most”, Goldman said, were the positions that appear most frequently among the top 10 holdings within hedge fund portfolios.
Hedge Fund Managers Pour Millions into Own Funds to Reassure Investors (Financial News)
Hedge fund managers are betting big with their own money in a bid to reassure their investors. The average investment by managers in their own funds stood at 8% of total assets under management in 2022, up from 6% in 2019, according to report by the Alternative Investment Management Association. Small hedge fund managers are more likely to invest their own capital than large funds. On average, hedge funds with assets below $1bn invested 9.3% of their own money, compared to 6.95% for funds with assets above $1bn.
Fuchs’s BFAM Hedge Fund Gains 7.5% in Initial Sign of Recovery (Bloomberg)
Benjamin Fuchs’s BFAM Partners (Hong Kong) Ltd. posted gains in both its main hedge fund and a side pocket of illiquid Chinese credit in January, according to people familiar with the matter, paving the way for a turnaround after a bruising year. The hedge fund of the $1.2 billion firm surged about 7.5% for the month, after a 26% loss in 2022, said the people, who requested not to be named because the matter is private. BFAM’s $400 million side pocket, mostly Chinese property credit assets, was up about 3.5% last month, rebounding from an even steeper drop than the main fund last year.
Wednesday 2/22 Insider Buying Report: RCM, FIS (Nasdaq.com)
At R1 RCM, a filing with the SEC revealed that on Tuesday, Chief Executive Officer Lee Rivas bought 71,767 shares of RCM, for a cost of $13.93 each, for a total investment of $1.00M. So far Rivas is in the green, up about 12.0% on their purchase based on today’s trading high of $15.60. R1 RCM is trading up about 6.3% on the day Wednesday. This purchase marks the first one filed by Rivas in the past twelve months. And on Friday, Director Brian T. Shea purchased $158,056 worth of Fidelity National Information Services, purchasing 2,300 shares at a cost of $68.72 a piece. This purchase marks the first one filed by Shea in the past year. Fidelity National Information Services is trading up about 1% on the day Wednesday. Bargain hunters can pick up FIS at a price even lower than Shea did, with shares changing hands as low as $67.47 at last check today — that’s 1.8% under Shea’s purchase price.
Hyatt Hotels, Charles Schwab And 2 Other Stocks Insiders Are Selling (Benzinga)
Morningstar: The Trade: Morningstar Inc (MORN) Executive Chairman Joseph Mansueto sold a total of 5,347 shares at an average price of $237.30. The insider received around $1.27 million from selling those shares. Hyatt Hotels: The Trade: Hyatt Hotels Corporation (H) Director Cary McMillan sold a total of 1,790 shares at an average price of $113.93. The insider received around $203.93 thousand from selling those shares. Charles Schwab: The Trade: Charles Schwab Corporation (SCHW) Director Charles Ruffel sold a total of 5,176 shares at an average price of $80.88. The insider received around $418.66 thousand from selling those shares.
