Ackman Says He’d Have to Think Hard Before Next Short Bet (Bloomberg)
William Ackman, who runs $20 billion Pershing Square Capital Management, is hesitant to take on another short campaign after Herbalife Ltd. because it’s not a productive use of time. “I would have to think very hard before doing another public short,” he said in a Bloomberg Television interview with Stephanie Ruhle at the Sohn Investment Conference in New York on Monday. “There are easier ways to make money.”
Greenlight’s Einhorn Attacks Frackers, Says Pioneer Burns Cash (Bloomberg)
David Einhorn, who runs hedge fund Greenlight Capital, criticized Pioneer Natural Resources Co. for spending too much money without returns and called it the “motherfracker.” “We think Pioneer generates a negative equity returns on capex” he said at the Sohn Investment Conference in New York on Monday. Pioneer shares fell 2.6 percent to $167.13 at 12:23 p.m. in New York.
Long Before British Vote, Financiers Weigh In (The New York Times)
No political party in Europe has done more for hedge funds and bankers in recent years than the British Conservatives. And the party has been well rewarded for it. Hedge fund managers have been writing eye-popping checks to the Conservative Party before the British election on Thursday. And with no campaign finance limits for party donations, there is little to hold them back. More than $2.3 million has come since last year from Michael Hintze, an Australian billionaire who lives in London, where he founded the hedge fund CQS Cayman LP.
Gundlach recommends buying Puerto Rico muni bonds, says could drop before rising (CNBC)
The annual Sohn Investment Conference generated some major headlines Monday, among them: Leon Cooperman warned that bonds were overvalued. David Einhorn outlined a new short position in fracking companies. Corvex‘s Keith Meister, a top-5 shareholder in Yum Brands, called on the company to spin off its China business. Jeff Gundlach recommended Puerto Rico’s embattled muni bonds.
Corvex’s Meister Says Yum Should Break Off China Business (Bloomberg)
Yum! Brands Inc. should spin off its China business to increase value, according to Keith Meister, founder of activist hedge fund Corvex Management, which says it’s one of the restaurant group’s five largest shareholders. “We think there is a clear, obvious way to create value and that’s to separate the business,” he said at the Sohn Investment Conference in New York on Monday, adding that such a move would create additional value of $16 per share. If the firm creates a China entity, it will be “levered to the endless growth to the Chinese middle class.”
Recap: The 2015 Berkshire Hathaway Annual Meeting (The Wall Street Journal)
Warren Buffett‘s “Woodstock for Capitalists”, the annual meeting of his Berkshire Hathaway Inc., celebrated a major milestone this year: Mr. Buffett has now been at the helm of the conglomerate for 50 years. Mr. Buffett played host to roughly 40,000 people at the company’s annual meeting Saturday, an event that swells the population of Mr. Buffett’s hometown by nearly 10% each year.
Ackman Triggers CSX Slide With Plans to Stay Silent on Railroad (Bloomberg)
Pershing Capital Management LP founder Bill Ackman said he was leaving CSX Corp. off his agenda for discussion at a hedge-fund conference, and the railroad’s shares slumped the most in more than a month. “I’ll save you time and energy — we’re not going to talk about CSX,” Ackman said Monday in a CNBC interview ahead of his appearance at the Sohn Investment Conference in New York. “Maybe no one will show up now.”
Macerich Settles Proxy Fight with Two Activist Hedge Funds (The Wall Street Journal)
Mall owner Macerich Co. has settled a proxy fight with two activist hedge funds, agreeing to add new directors and to reverse moves that helped thwart a takeover effort by Simon Property Group Inc. Shares of Macerich gained 3% on the news in midday trading. Macerich will add two new board members mutually agreed upon with Land and Buildings Investment Management LLC and Orange Capital LLC, which were jointly waging a battle for director seats, according to people familiar with the matter.
