Editor’s Note: Related tickers: Bank of America Corp (NYSE:BAC), Herbalife Ltd. (NYSE:HLF), Smithfield Foods, Inc. (NYSE:SFD), The Hain Celestial Group, Inc. (NASDAQ:HAIN), Apple Inc. (NASDAQ:AAPL), J.C. Penney Company, Inc. (NYSE:JCP), ClickSoftware Technologies Ltd. (NASDAQ:CKSW), Partner Communications Company Ltd (ADR) (NASDAQ:PTNR), Icahn Enterprises LP (NASDAQ:IEP)
Starboard lines up rival buyers for Smithfield Foods (InstitutionalInvestorsAlpha)
It is one thing for an activist investor to oppose a merger deal and push for another bidder and a higher price. It is more unusual for an activist to actually go out and find a better competing deal. But this is exactly what Jeffrey Smith — a co-founder and the chief executive and chief investment officer of New York activist hedge fund firm Starboard Value — has apparently done. On May 29 the food processing company Smithfield Foods, Inc. (NYSE:SFD) agreed to be acquired by Hong Kong–based holding company Shuanghui International Holdings for $34 a share. In typical activist manner, Starboard fired off a letter to Smithfield’s board of directors urging the company to seek a higher price.
Meet The Man Who Is Now The Largest Individual Shareholder Of Herbalife (BusinessInsider)
William Stiritz is now the largest individual shareholder in Herbalife Ltd. (NYSE:HLF). The 77-year-old investor disclosed in a 13G regulatory filing with the SEC today that he personally owns 5,382,362 shares, or a 5.22% stake, according to data compiled by Bloomberg. The second biggest individual shareholder is Herbalife Ltd. (NYSE:HLF)’s CEO, Michael Johnson. Johnson owns over a million shares. Stiritz’s Herbalife Ltd. (NYSE:HLF) stake is worth about $322 million or so. That a huge stake for an individual.
BofA Hedge Fund Suit Against Bear Stearns Dismissed (Law360)
A New York federal judge dismissed a lawsuit accusing two former Bear Stearns Cos. hedge fund managers of deceiving Bank of America Corp (NYSE:BAC) into entering into a costly, failed transaction, ruling Tuesday that the bank couldn’t prove proximate cause due to inadmissible expert testimony. U.S. District Judge Alison J. Nathan decided that financial economist Dr. Mukesh Bajaj’s testimony, upon which Bank of America Corp (NYSE:BAC) relied to prove its fraud and breach of fiduciary claims, couldn’t be admitted because his methodology was unreliable. She held that Bajaj, who…
Expert networks: thriving in Asia, away from U.S. scrutiny (Reuters)
Expert networks – a matchmaking service that connects investors with industry experts – are under scrutiny from regulators in the United States, but are expanding across Asia where the market for corporate intelligence is less transparent. The industry’s reputation took a hit in the United States, after the Securities and Exchange Commission charged more than three dozen people and firms as part of a broad investigation into ties between investors and expert networks. The cases uncovered examples of insider trading and helped trigger the high-profile fall of Raj Rajaratnam’s Galleon hedge fund.
Why hedge? How hedge funds reduce risk, Correlations not as strong: An opportunity for funds (Opalesque)
Permal Group Chairman and CEO, Isaac Souede, is at the forefront of the hedge fund industry, with 30 years of experience in managing investments in one of the industry’s leading hedge fund groups. Today, the Permal Group manages $25 billion and through nine offices across the globe. In a talk delivered at CKGSB’s Beijing campus, Souede discussed the growth of the hedge fund industry, how the industry and different hedge fund products operate, and what it takes to be a successful hedge fund manager.
Icahn cutting stake in Hain Celestial by half through stock sale (Reuters)
Activist investor Carl Icahn and his entities are cutting their stake in The Hain Celestial Group, Inc. (NASDAQ:HAIN) by roughly half, Hain said on Tuesday. Hain Celestial Group said certain shareholders, including entities related to Icahn, will sell 3.65 million shares of common stock in the company, with Jefferies LLC serving as the underwriter in the sale’s public offering. Following the sale, Icahn and his related entities will collectively own roughly 3.59 million shares in Hain, or 7.5 percent of the company, Hain said.
Marc Faber: Why a correction is coming soon (CNBC)
Momentum in asset growth is vital to successfully raising hedge fund assets, says Agecroft (HedgeWeek)
They are constantly hearing that a majority of assets are flowing to the largest hedge funds despite evidence that shows smaller hedge funds have significantly out performed larger funds over time. Frequently they hear that once they get to a certain asset size, it will be much easier to raise assets. However, that is not necessarily true. Agecroft Partners believes that momentum in asset growth is more important to being successful in raising hedge fund assets for small and medium sized hedge funds than the current asset size of the organisation.
Glenview Joins Bass in Raising Stake on J.C. Penney Recovery Bet (BusinessWeek)
Glenview Capital Management LLC joined J. Kyle Bass in raising its stake in J.C. Penney Company, Inc. (NYSE:JCP), becoming its biggest shareholder in a bet the retailer will recover after Bill Ackman ended a revamp effort last month. Hayman Capital Management LP, Bass’s hedge fund, held 11.4 million shares of the Plano, Texas-based department-store chain, according to a filing (JCP:US) yesterday. In a separate filing (JCP:US), Glenview said it owned 20.1 million shares, or a stake of 9.1 percent.
Sir Michael Hintze – hedge fund crusader with the superhero CV (BRW)
From the meeting room of the London headquarters of Convertible Quantitative Strategies (CQS) you can peer into the magnificent gardens and grounds of Buckingham Palace. It’s an appropriate vantage given the hedge fund’s extraordinary 59-year-old founder, Australian Michael Hintze, was knighted in this year’s Queen’s honours list. The highest recognition from Her Majesty adds to an impressive collection of accolades gathered from a lifetime of philanthropy, patronage – and stellar trading for the BRW Rich-lister.
Soros-Backed ClickSoftware Sinks as CEO Quits: Israel Overnight (BusinessWeek)
ClickSoftware Technologies Ltd. (NASDAQ:CKSW), the Israeli developer whose largest investor is George Soros’s fund, tumbled in New York as the departure of its co-chief executive officer raised concern about the company’s outlook. Shares of the Petach Tikva, Israel-based company sank 1.5 percent, extending this year’s decline to 19 percent. The Bloomberg Israel-US Equity Index of the most-traded Israeli stocks in New York was little changed and the shekel dropped the most in a week on speculation the U.S. is moving closer to striking Syria. Partner Communications Company Ltd (ADR) (NASDAQ:PTNR) widened the discount to its Tel Aviv shares to the biggest since July 21. The Israeli stock market is closed today for a holiday.
Is There Any Nuance in Icahn’s Relationship with Apple? (WallStCheatSheet)
In August, notorious activist investor Carl Icahn announced – via Twitter – that his fund, Icahn Enterprises LP (NASDAQ:IEP), had taken a “large position” in Apple Inc. (NASDAQ:AAPL). Icahn suggested that the company is still “extremely undervalued” — shares closed Friday at $487.22 — an argument that has been on the tip of many investors’ tongues ever since shares dropped below $500 earlier in the year and the company first announced its massive buyback program…
