Editor’s Note: Related tickers: J.C. Penney Company, Inc. (NYSE:JCP), Starbucks Corporation (NASDAQ:SBUX), Goldman Sachs Group, Inc. (NYSE:GS), Herbalife Ltd. (NYSE:HLF)
Investors in Third Point Reinsurance Ltd.’s initial public offering are betting on billionaire hedge fund manager Daniel Loeb. They’re also taking on risk from an unprofitable underwriting operation. The sale could raise as much as $322.2 million and price today, according to data compiled by Bloomberg. Proceeds will boost underwriting capacity at the Bermuda-based reinsurer, which relies on Loeb’s Third Point LLC to oversee an investment portfolio valued at more than $900 million at midyear.
Ackman quits J.C. Penney board, ending feud (TheGazette)
The circus-like atmosphere that had taken over the boardroom at J.C. Penney Company, Inc. (NYSE:JCP) ended on Tuesday with hedge fund billionaire William Ackman stepping down from the board of the struggling U.S. retailer. Ackman’s decision to leave comes after a failed two-year attempt by his Pershing Square Capital Management hedge fund to remake J.C. Penney Company, Inc. (NYSE:JCP)’s into a more upscale retail chain and a week of public fighting with other board members including interim-Chief Executive Officer Myron (Mike) Ullman. People close to Ackman and the company said the hedge fund manager’s decision to leave the board, which Ackman formally agreed to Monday night, was necessary for J.C. Penney Company, Inc. (NYSE:JCP) to focus on its operations and continue the search for a new CEO.
Icahn Rakes in $500 Million as Soros Reportedly Joins Herbalife (NaturalProductsInsider)
Billionaire investor Carl Icahn recently disclosed that his 16.5-percent interest in the nutritional supplements company Herbalife Ltd. (NYSE:HLF) is paying off. In a phone interview last week with anchor Liz Clayman of the Fox Business Network, the 77-year-old businessman confirmed the investment has yielded $500 million. “Yes, we have made $500 million,” he said. Icahn touted Herbalife Ltd. (NYSE:HLF) in the wake of reports that fellow billionaire George Soros has taken a position in the company.
Bill Ackman Accuses Starbucks CEO Of Hypocrisy Over Leaking Memos To The Media (SBUX) (Seattlepi)
Hedge fund manager Bill Ackman called out Howard Schultz yesterday evening on Charlie Rose on PBS. Schultz earlier ripped into Ackman for leaking letters for J.C. Penney Company, Inc. (NYSE:JCP)’s board in the press. …Ackman, who said he’s never spoken to Schultz, hinted that the Starbucks Corporation (NASDAQ:SBUX) CEO may have leaked a memo he wrote to the press. “The reality is Howard Schultz…he brought in Jim Donald. Howard Schultz wrote a memo to the board that was leaked to the press. Not clear who leaked that memo…”
Tories take hundreds of thousands from hedge fund managers while giving them a tax cut (LeftFootForward)
The Conservative Party received over a million pounds in just three months from donors who had private dinners with David Cameron and other senior ministers. This includes £694,370 from donors in the financial sector, including hedge fund managers. In March George Osborne announced a tax cut worth £145 million to hedge funds. Sadiq Khan, Labour’s Shadow Justice Secretary, commented: “The Tories have raked in over £1 million from private dinners with David Cameron and senior Ministers in the last quarter. And more than two thirds of that comes from the City – the bankers and hedge fund bosses whose taxes David Cameron cut.
Why Steinway Is Likely To Be Sold To A Hedge Fund Manager (Kuhf)
Steinway & Sons, the 160-year-old musical instrument maker, is set to change hands. Last month, a private equity firm emerged as the company’s likely buyer. But a mystery bidder — rumored to be hedge fund manager John Paulson — has swooped in at the last minute, and now looks likely to take control of one of the oldest manufacturers in the United States. Paulson made billions betting against the housing market at a time when many thought housing prices could only go up. His reported offer for the company is $458 million.
Hermes seeding venture inks second hedge fund deal (Opalesque)
Hermes BPK Partners, the $2.6 billion alternatives advisory boutique for the BT Pension Scheme, and US private equity firm Northern Lights Capital Group, have announced a second deal for their Accelerator Fund, which invests in early stage and emerging hedge funds. The Accelerator fund has invested in Altalis Capital Partners, a New York-based value-oriented long/short equity strategy, according to a statement from the two firms. The size of the deal was not disclosed but Altalis now has about $150 million in assets under management following the transaction, the statement said.
Jos A. Bank activist letter (CNBC)
Growth at last for the hedge fund industry? (MoneyWebTax)
Overall, proposed changes are positive. National Treasury has produced some sensible yet transformative proposals for the tax treatment and regulation of hedge funds. Changes to the Income Tax Act contained in the Taxation Laws Amendment Bill of 2013, as well as forthcoming changes to the Collective Investment Schemes Control Act (CISCA) will open up attractive new options for private investors. Hedge funds have to date been unregulated, with the result that they could not be promoted or offered to the man in the street.
Hedge fund spends £850,000 on shares (EveningTimes)
As reported in later editions of yesterday’s Evening Times, the shares were sold for £840,000. The buyers have been revealed as Laxey Partners Ltd, who in June this year bought 714,285 shares from Charles Green. That amount represented 1% of the club’s total available shares and with the latest purchase, Laxey Partners has increased its stake in Rangers to 4.99%. The news was confirmed in a statement to the London Stock Exchange.
SEC Sues Hedge Fund Manager For Stripping Co. Coffers (Law360)
The U.S. Securities and Exchange Commission on Tuesday charged a colorful money manager with using his company as a “personal piggy bank,” investing some of his client’s funds but spending the rest on lavish purchases for himself. Anthony Davian, founder of Ohio-based Davian Capital Advisors, misappropriated more than $1 million of investors’ money in his unregistered management company, according to the SEC complaint. The fund launched in 2008 and by June 2011, Davian, its sole controller, had raised from clients $1.5 million that he allegedly squandered….
Former Goldman Managers Plan Asia Hedge Fund (Fa-Mag)
Three former managing directors of Goldman Sachs Group, Inc. (NYSE:GS)’s Japan business plan to start an Asia multi-strategy hedge fund early next year, according to two people with knowledge of the matter. Koji Gotoda and Takayuki Kasama have incorporated Golvis Investment Pte in Singapore, said the people, who asked not to be identified as the information is private. The fund will invest in all asset classes with an initial focus on Japan, they added. Japan-focused hedge funds have historically traded stocks, making a company staffed by a large team of former Goldman Sachs Group, Inc. (NYSE:GS) employees and capable of investing in multiple asset classes a rarity, one of the people said.
Marc Faber snapping up shares in Sprott (TheGlobeAndMail)
Marc Faber, the famed investor known for his gloomy take on the markets, bought beaten-down common shares in asset management firm Sprott Inc. this month, regulatory filings show. Paul Stephens, chairman and partner of Stephens Investment Management LLC, a San Francisco-based hedge fund, has also been snapping up shares. Both Mr. Faber – who is the author of The Gloom Boom & Doom Report – and Mr. Stephens are directors of Sprott. Eric Sprott, who is CEO of Sprott Inc. and oversees its resource-themed investment arm Sprott Asset Management, is one of the world’s best known gold bugs.
Jim Rogers: Why I’m shorting India (LiveMint)
Hedge fund manager Jim Rogers, who moved to Singapore in 2007 because he thought the centre of the world is shifting to Asia, says India is set to miss out on the Asian century. The chairman of Rogers Holdings says that if there is one country an individual must visit, it has to be India for its “spectacular sensory feast, beautiful, food, colour and religions”, but it is also the worst country to do business in. Rogers also slammed the Indian government’s recent curbs on gold imports, saying Indian citizens had no choice but to buy the metal because they had very little faith in investing in other sectors of its economy.
