Investing Like Ackman Lifts Canada Index as Valeant Gains (Bloomberg)
Hedge fund investor Bill Ackman is used to taking big bets for big rewards, as he’s done with Valeant Pharmaceuticals International Inc. Buyers of Canadian index funds may be on a similar thrill ride without even knowing it. Valeant is rapidly becoming the 800-pound gorilla of the Standard & Poor’s/TSX Composite Index, Canada’s benchmark equity gauge after an acquisition spree supported by Ackman, the drugmaker’s second-biggest shareholder.
Trian’s Peltz Says Prospects for DuPont Settlement ‘dim’ (CNBC)
Nelson Peltz, activist investor and principal of hedge fund Trian Fund Management, on Monday told CNBC that the prospects for a last-minute settlement with DuPont in a proxy battle were “dim.” DuPont has refused to add Peltz to its board and has rejected his demand to split the company’s volatile materials business from the more stable units such as agriculture, nutrition and health, and industrial biosciences.
Paul Singer’s Billion Dollar Hedge Fund Is Going to War Over $58,000 (Bloomberg)
When it comes to hedge-fund manager Paul Singer’s defaulted-debt claims against Argentina, the billionaire has the law on his side. Actually getting paid, however, is a different matter. Snubbed by Argentina for more than a decade, not even his legal victories in U.S. courts — or a second default that they triggered in July — have been enough to compel the nation to repay the $1.7 billion it owes. That’s left Elliott Management, Singer’s $25 billion hedge-fund firm, to scour the world for any seizable asset, large or small, that it can find.
Hedge Fund Brands U.K. Bank Levy a ‘Disaster’ (The Wall Street Journal)
A hedge fund that focuses on financial stocks and bonds, which has previously advised the U.K. government on its bank holdings, has slammed Britain’s bank levy, warning it is a “disaster” for the U.K. Davide Serra, founder of hedge fund Algebris Investments, which manages $2.5 billion said: “The bank levy is totally unsustainable. If the U.K. takes 25% of U.K. banks’ profitability, no bank will want to be domiciled here. It is a total disaster for the U.K.”
Billionaire Paulson Said to Score Hedge Fund Wins In April (Bloomberg)
Billionaire John Paulson’s hedge funds gained in April after successful wagers on energy, mergers and Greek banks. Paulson & Co.’s merger strategy, which comprises more than half of the firm’s $19.5 billion in assets, profited on potential takeovers in health care, media and telecommunications, said two people with knowledge of the returns, who asked not to be named because the information is private. Paulson Partners gained 1.5 percent last month and 6.1 percent this year, said the people. A version that uses borrowed money rose 2.9 percent in April and 13 percent for 2015.
Hong Kong Hedge Fund Azentus Gets Smaller (The Wall Street Journal)
Investors have withdrawn nearly $500 million from one of Hong Kong’s most high-profile hedge-fund managers, Azentus Capital Management Ltd., in the wake of lackluster performance. Azentus’s assets under management stood at $139 million as of April 1, according to a letter sent to investors and seen by The Wall Street Journal. Azentus started trading with $1 billion in April 2011 amid much fanfare. Investors flocked to the hot new fund, sending assets to a peak of around $2 billion within months, the people said. It continues to manage outside capital, according to people familiar with the fund.
Hedge Fund JAT Says It’s Closing to Become Family Office (Bloomberg)
John Thaler, founder of JAT Capital, is returning client money to turn his $1.7 billion hedge fund firm into a family office. “As I approach my 20th anniversary working in the financial services industry, with the last eight spent building and managing JAT Capital, it is the right moment to take a break, spend time with my young family and determine which path to pursue next,” Thaler, 39, wrote in a letter to investors, a copy of which was obtained by Bloomberg.
Argentine Bonds Fall After Hedge Fund Asks to Block Payment (Bloomberg)
Argentine bonds issued under local law, which have continued to get paid after the country’s July default, declined after hedge fund Aurelius Capital Management said it’s seeking to block the payments. The nation’s 2024 bonds reversed earlier gains and slid 0.25 cent to 98.17 cents on the dollar, pushing yields up 0.05 percentage point to 9.1 percent at 5 p.m. New York time.
Oil Rallies As hedge Funds Are Caught Short: Kemp (Reuters)
Oil’s sharp rally since the middle of March has been driven by a race among bearish hedge funds to cover loss-making short positions rather than any great bullishness about the outlook. On the eve of the rally, hedge funds and other money managers had amassed record short positions in WTI-linked futures and options amounting to 209 million barrels of oil. But in the seven weeks between March 17 and May 5, hedge funds cut their shorts by almost 116 million barrels to 93 million, a decline of more than 55 percent.
Canada Stocks Decline in Global Equities Slide; Air Canada Gains (Bloomberg)
Canadian stocks declined for a second day, joining a slide among global equities, as health-care companies led losses. Valeant Pharmaceuticals International Inc., an investment target of hedge-fund manager Bill Ackman, slid 1.6 percent to pace declines. Concordia Healthcare Corp. fell 1.7 percent. Veresen Inc. and Pacific Rubiales Energy Corp. dropped more than 2.9 percent as oil and gas producers resumed declines. Air Canada jumped 4.1 percent after reporting profit that topped estimates.
