Acclaimed Hedge Fund Manager Takes Big Stake in RadioShack Corporation Stock (DailyFinance)
It seems the stock market and media may have been snoozing last Friday when Jamie Zimmerman‘s Litespeed Management LLC disclosed an 8.1% stake in RadioShack Corporation (NYSE:RSH). Shares were up slightly on Tuesday morning, but with no sign of Wall Street taking notice of the large position. For those unfamiliar with Zimmerman, she is a famed hedge fund manager known for her incredible market-beating performance in the early 2000s. Most sources quote her firm Litespeed LLC as managing around $1.0 billion in assets and specializing in special situations, distressed securities, and bankruptcy.
LSB fires back at hedge fund pushing company to make changes (NewsOK.com)
After coming under attack from a hedge fund which says it plans to launch a proxy fight, LSB Industries, Inc. (NYSE:LXU) is firing back against claims that the company lacks proper oversight and that its stock is undervalued because of mismanagement and other internal problems. Jack Golsen, LSB’s chairman and CEO, said in a letter to shareholders that the company’s board rejected most of New York-based hedge fund Engine Capital’s demands that the company spin off its climate control business and make governance reforms.
Darden should delay Red Lobster spinoff, hedge fund says (Orlando Sentinel)
Activist investor Starboard Value urged Darden Restaurants, Inc. (NYSE:DRI) on Tuesday to slow down its spinoff of Red Lobster until it fully considers other options. In the letter filed with the U.S. Securities Exchange & Commission, Starboard also criticized Darden for what it called a “bloated cost structure.” Starboard, a New York hedge fund, said Darden’s plan may not be in the best interest of shareholders. Darden said in a statement Tuesday it already conducted a full review of options – and received shareholders’ input – before deciding on its current path.
Hedge funds approach BoE minutes with bullish sterling bets (Reuters UK)
Hedge funds are approaching Wednesday’s Bank of England minutes betting the pound will extend its surge to a one-year high against the euro but wary the bank could signal interest rate rises may be pushed back. Many hedge funds were slow to catch on to the pound’s 12 percent rally from early July to the end of 2013. The gains came as the UK economy’s recovery increased the chances the Bank would be the first major central bank to raise interest rates. As the rally took hold, funds added to their bets, ending the year bullish.
Global Hedge-Fund Assets Climb 17% to a Record $2.63 Trillion (San Francisco Chronicle)
Hedge-fund assets increased by 17 percent last year, reaching a record $2.63 trillion, according to Hedge Fund Research Inc. Global assets rose by $376 billion, including $63.7 billion in net inflows from investors and $312 billion in investment gains, the Chicago-based data provider said in a report today. The fourth quarter was the sixth in a row that the industry saw a growth in assets, it said. Investors poured $29.6 billion into event-driven strategies, which include activist-oriented hedge funds such as Daniel Loeb’s Third Point LLC and Bill Ackman’s Pershing Square Capital Management LP.
