David Einhorn’s top small-cap picks (MarketWatch)
Investors, including most billionaire hedge fund managers , can’t generate meaningful outperformance when they invest in large-cap stocks. David Einhorn was extremely bullish about Apple Inc. (NASDAQ:AAPL) a couple of years ago when the stock was trading at a split-adjusted price of $100. Since those days, the stock market has zoomed 45% and Apple shares have lost 10%. Apple was Einhorn’s top position two years ago, and it still is. Blue Harbour Group isn’t good at picking large-cap stocks. What makes it successful is its small-cap stock picks. These stocks generated double digit annual outperformance during the same five year period.
Hedgie Paul Singer’s ‘vulture investing’ paid off royally (New York Post)
Hedge-fund mogul Paul Singer, after an 11-year battle to collect on defaulted Argentine bonds — a fight that included three huge legal victories and a global hunt for assets — stands weeks away from possibly collecting $832 million on an estimated $48 million investment. That’ s a 1,608 percent return — a huge payday, to be sure, but not even the biggest in Singer’s 37-year career. It’s the kind of investment acumen that has helped Singer’s $23 million Elliott Management, the ninth-largest US fund, post an annualized return of 14 percent since 1977 — outpacing the 11.3 percent return for the S&P 500 during that time.
Millennium parts ways with hedge fund star (Financial Times)
Millennium Management, the $23bn New York hedge fund, has parted ways with one of the longest-serving partners in its European office after he made a sizeable trading loss this year, according to people with knowledge of the matter. Chris Dale, who had worked at Millennium in London since the New York hedge fund opened its office there in 2006, left the company in May, the people with knowledge of the situation said. They added Mr Dale was running one of Millennium’s largest trading books in Europe worth more than $1bn but left after he made a loss of about 5 per cent in a short period.
Divorce Hearing For TCI’s Hohn, Wife Opens (FINalternatives)
The Children’s Investment Fund founder Christopher Hohn’s estimate of his net worth is at least one order of magnitude smaller than his estranged wife’s. At a divorce hearing, Jamie Cooper-Hohn’s lawyers alleged that Hohn was hiding assets, claiming the couple’s joint assets are about £850 million and that Hohn has personal assets of at least £872 million more, including TCI itself. Hohn has countered that he’s worth only £67 million.
Wexford Capital Trims Stake in Diamondback Energy Inc (FANG) by 10% (Insider Monkey)
Charles Davidson’s Wexford Capital has reduced by 10% its position in Diamondback Energy Inc (NASDAQ:FANG), a $4.5 billion market cap independent oil and natural gas company. The fund disposed of 1.0 million shares of Common Stock (par value $0.01) last week, at a price of $89.12 per share. Following the reported transaction, Wexford Capital owns 8.63 million shares of the oil and natural gas company, worth roughly $761.745 million at the current stock price.
Private equity leverage ‘creeping up rapidly’: Pro (CNBC.com)
