David Tepper ranks as best paid hedge fund manager, again (Reuters)
Hedge fund mogul David Tepper had a case of deja vu when he ranked as the best paid hedge fund manager for the second year running by earning $3.5 billion in 2013 with a savvy bet on airline stocks, according to a new ranking. Even though many hedge funds earned only lackluster returns last year and sharply trailed the S&P 500’s 30 percent gain, it was a banner year for a small number of hedge fund managers, according to Institutional Investors’ Alpha’s 13th annual ranking of the industry’s best paid managers. Tepper, who runs Appaloosa Management, was followed in second place by Steven A. Cohen, who earned $2.4 billion.
Glenview’s Robbins Backs Monsanto Over Whole Foods Utopia (1) (Businessweek)
Larry Robbins, founder of $7.5 billion Glenview Capital Management LLC, said he’s amassed a $1 billion position in seed maker Monsanto Company (NYSE:MON) and intends to hold it as a long-term investment as demand for genetically modified foods rises. “In a utopian world we would all be able to shop with hedge-fund managers and Hollywood stars and pay whatever we wanted at Whole Foods,” Robbins said in an interview today with Bloomberg Television’s Stephanie Ruhle at the 19th annual Sohn Investment Conference in New York.
Einhorn Sends Athenahealth Stock Reeling (Wall Street Journal)
Five hours and a dozen presentations into the annual Sohn Investment Conference, a speaker finally drew a big market reaction, as hedge-fund manager David Einhorn unveiled a bet against athenahealth, Inc (NASDAQ:ATHN). Shares of the electronic health-care-records provider plummeted after Mr. Einhorn, founder of Greenlight Capital Inc., said the stock may fall 80%. One of the few hedge-fund managers to relish talking about his shorts, Mr. Einhorn said athena and other technology stocks were indicative of a bubble. Shares in the company, which wasn’t available for comment, quickly dropped 10% to about $113 in after-hours trading.
PAUL TUDOR JONES: ‘Friday Was One Of The Greatest Days I Can Remember In Macro Trading’ (Businessinsider India)
Paul Tudor Jones just presented at this year’s Sohn Investment Conference, and his idea came with a serious dose of market wisdom in the midst of what he considers one of the hardest times for macro traders he’s seen in his career. He made his point using Friday’s stellar jobs number. As PTJ pointed out, it was some of the strongest data the U.S. has seen since 2007. It sent every signal to sell bonds.
Ira Sohn: Coatue’s Laffont sees Liberty Global’s stock price climbing (Reuters)
Hedge fund manager Philippe Laffont recommended Liberty Global Plc at an investment conference on Monday, saying that fresh demand in broadband services will help boost growth at the company. Laffont, speaking at the Sohn Investment Conference in New York, said Liberty’s shares, now trading around $40 a share, could “easily” rise above $100 per share. He said the huge popularity in video streaming service Netflix, Inc. (NASDAQ:NFLX) will force homeowners to upgrade their broadband.
Why Bill Ackman Is Bullish on Fannie, Freddie (Wall Street Journal)
Bill Ackman detailed his bullish bet on Fannie Mae and Freddie Mac. It boils down to this: The companies that were too big to fail are now too important to replace. Mr. Ackman’s Pershing Square Capital Management disclosed last November that it had taken 10% stakes in the common stock of Fannie and Freddie. On Monday, he spoke in greater detail at the Sohn Investment Conference in New York on his investment thesis. Fannie and Freddie, whose shares both trade over the counter at around $4, are worth $23 on a conservative basis, he said, and could be worth as much as $47.
Gundlach’s bearish call on single-family housing (CNBC.com)
Sohn 2014: Novogratz on Brazil, ‘So Bad It’s Good’ (Barron’s)
Fortress Investments (FIG) principal Michael Novogratz takes the stage at the 19th annual Sohn Investment Conference with what he asserts is a deeply loathed investment idea: Brazil. Novogratz argued that Brazilian stocks, especially, present a compelling investing opportunity precisely because sentiment is so low. He predicted good things in store for the country if, as he told conferencegoers he believes will be the case, if President Dilma Rousseff suffers an upset loss in the country’s October presidential elections.
Abercrombie & Fitch Buries Hatchet With Hedge Fund (DailyFinance)
It’s time to move on. Abercrombie & Fitch Co. (NYSE:ANF) wisely decided it was better to switch than fight, and agreed to appoint to its board four new independent directors, a move recommended by activist investor Engaged Capital. The looming proxy battle was gearing up to be a costly distraction for the teen retailer after the hedge fund operator very publicly opposed the path management set the company on and the man they chose to lead it forward. Yet with the rapprochement, the two sides have effectively set aside their differences and are looking toward the future rather than the past. And, fortunately for CEO Michael Jeffries, it’s one that still includes him at the helm.
Jeffrey Gundlach shorts home-builders as young buyers shun mortgages (MarketWatch)
Investing giant Jeffrey Gundlach made a call to short homebuilders Monday, playing on a bearish prognosis about the housing market that speaks to a fundamental shift in the U.S. economy. Gundlach, who runs money management firm DoubleLine Capital, is often looked to as a bond specialist. But he’s been known to flirt with other types of offerings, which he did with gusto at the Ira Sohn Investment Conference. At the annual gathering of big-name investors, Gundlach said he is shorting the SPDR S&P Homebuilders ETF. In the wake of his talk, the ETF was down 1.3%.
Hedge funds turn to Asia – and airlines (Sydney Morning Herald)
New York’s hottest young hedge funds are turning their attention towards Asian equities and airlines for the next big trade. At Sohn Next Wave, held in New York’s Lincoln Centre ahead of the prestigious Sohn Investment conference, Chinese travel agent Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), Indian telco Bharti Infratel, Japanese property company Goldstar and US airline JetBlue Airways Corporation (NASDAQ:JBLU) were the best trades touted. Jason Karp, of $1.3 billion Tourbillon Capital Partners, could hardly contain his enthusiasm for the enormous potential of Nasdaq-listed Chinese travel company Ctrip.
Chris Shumway Says Bet Against China’s Yuan, Buy Moody’s Shares (Businessweek)
Chris Shumway, head of Shumway Capital Partners LLC, recommended betting against the Chinese yuan using forward options and buying shares of Moody’s Corporation (NYSE:MCO). “They have limited options within China to deal with their slowing growth,” Shumway said at the 19th annual Sohn Investment Conference in New York. “Our view is they’re growing at 6 percent and decelerating. They either need to add stimulus or the simplest way to do it is through currency depreciation.”
