Loeb Credit Bet Returns 15% in Quarter on Junk Energy Holdings (Bloomberg)
Hedge fund manager Dan Loeb’s corporate credit portfolio returned 15 percent in the second quarter, helped by a bet on high-yield bonds. “Performance was largely driven by positive returns from performing credit investments in the energy sector,” Loeb said Friday in a conference call discussing results at Third Point Reinsurance Ltd., the Bermuda-based company that counts on him to oversee investments. “We maintain minimal distressed credit exposure at present.” Loeb, 54, started amassing more than $1 billion in energy credit in February, he said previously in a second-quarter letter to his hedge fund’s clients, adding that he felt there was too much pessimism in the market.
Carl Icahn Can Profit From Trump Taj Mahal Casino Flop (CNBC)
Yes, activist hedge fund investor Carl Icahn took a loss on his investment in the Trump Taj Mahal — he says it was for a whopping $100 million. Icahn’s a savvy investor, but even he couldn’t have foreseen the issues that would come to hurt the properties that bear Trump’s name: according to data from Foursquare, foot traffic to his places of business have been hurt during his campaign for the presidency. But there’s still a way Icahn can swing a profit on the failure of the Trump-affiliated gaming house. He just needs Trump’s former patrons in Atlantic City to head over to the Tropicana.
Oil bull Hall’s Astenbeck Capital down 16 pct in July; slashing annual gain (Reuters)
Aug 5 Famed oil bull Andy Hall‘s Astenbeck Capital Management lost about 16 percent in July as crude oil prices fell as much that month, the energy-focused hedge fund said in a note to its investors on Friday. Combined with its June loss of around 2 percent, the Southport, Connecticut-based Astenbeck was up less than 2 percent for the year as of end-July, according to the note seen by Reuters. Astenbeck had earlier shown an annual gain of 24 percent at end-May, after three straight months of profits powered by a rally in crude prices. (Reporting by Barani Krishnan; Editing by Jonathan Oatis).
Icahn Declines To Join Trump Economic Team, Mulls Second Super PAC (Reuters)
Billionaire investor Carl Icahn turned down an invitation to join Republican presidential candidate Donald Trump’s economic advisory council because Icahn is considering funding a Super PAC focused on regulatory reform, Icahn’s general counsel told Reuters on Friday. This would be his second Super PAC. Technically known as independent expenditure-only committees, Super PACs may raise unlimited sums of money from corporations, unions, associations and individuals, then spend unlimited sums to advocate for or against political candidates. The first Super PAC Icahn formed had an initial commitment of $150 million and was targeted at “tax inversions,” which occur when a company moves its headquarters outside the United States to take advantage of lower tax rates elsewhere.
Factbox: Republican Presidential Candidate Trump’s Economic Team (Reuters)
U.S. Republican presidential candidate Donald Trump on Friday announced his team of economic advisers, which includes a hedge fund manager, a former top steel executive, and a former high-ranking U.S. government official. Trump said he would deliver a speech on his economic policy plan on Monday. Here are some facts on members of his economic team: JOHN PAULSON, HEDGE FUND MANAGER. Paulson is best known on Wall Street for his bet against the overheated housing market in 2007 that netted him and his investors billions of dollars in profits. But Paulson’s calls on stocks and the economy have been less accurate lately. His investments have lost some $15 billion in assets in the last five years, leaving his Paulson & Co Inc hedge fund with roughly $13 billion at the end of June. He is known for making contrarian bets and being patient.
Exclusive: LifeLock Taps Evercore To Explore Options – Sources (Reuters)
LifeLock Inc (LOCK.N), a U.S. identity theft protection services company, has hired Evercore Partners Inc (EVR.N) to defend itself against activist hedge fund Elliott Management Corp and explore its options, people familiar with the matter said. Elliott unveiled a stake in LifeLock in June, saying the shares were undervalued. It said it had initiated a dialogue with the LifeLock management and board of directors about opportunities to enhance shareholder value. LifeLock has asked Evercore, a New York-based investment bank, to help explore several strategic alternatives, including the possibility of a sale of the company, the sources said this week. There is no certainty, however, that any sale of LifeLock will occur, the people cautioned.
Taconic Co-founder Brody Comes Out Of Retirement To Launch New Hedge Fund (Reuters)
Aug 4 Hedge fund veteran Kenneth Brody has come out of retirement to launch a new money management firm, a person familiar with the situation told Reuters on Thursday. Brody, who co-founded Taconic Capital Advisors and retired in 2013, has reemerged as chief executive of Sutton Square Partners, a New York-based hedge fund manager. Sutton Square will start investing on Sept. 1 with more than $100 million, including $50 million from Brody, according to the person. The fund will focus on stock picking, betting for and against stocks across sectors. Investments will be led by portfolio manager Victor Ho, previously an executive at hedge fund firm Conatus Capital Management. A team of four analysts will work with Ho, including Brody’s son Charlie Brody.
