An Ackman Director Contest at Chipotle Would Find Shareholder Support (TheStreet)
If activist investor Bill Ackman wants to escalate his insurgency at Chipotle Mexican Grill (CMG) by seeking to install a dissident slate of directors he likely will find many disgruntled investors who will back his efforts – especially if the embattled billionaire targets the chiefs of the burrito retailer’s audit and governance panels for replacement. Ackman, who runs Pershing Square Capital Management LP, launched an activist campaign at the restaurant chain on Tuesday, reporting a 9.9% stake and noting that he intends to engage in discussions with the company’s management about its strategic plans, capitalization and financial condition.
The Biggest Hedge Fund Donor This Election: Why It Stays So Quiet (CNBC)
Secretive money manager Robert Mercer, who has donated roughly $19 million to conservative causes during this election cycle, has emerged as a central figure in the Donald Trump presidential campaign recently. But the company where he is co-chief executive, Renaissance Technologies, may be an even bigger player in the current political topography. So far this cycle, individuals affiliated with Renaissance have donated about $34 million either to candidates running for office or groups supporting them, according to records sorted by the Center for Responsive Politics.
Corporate America Now Seeking Activist Shareholder Help (Forbes)
Corporate chiefs generally don’t like to be told what to do and traditionally they did everything in their power to resist the influence of activist shareholders, often going to battle to keep them out of the boardroom. Not long ago, the last thing an American CEO wanted to hear was that Carl Icahn, Bill Ackman or Dan Loeb was calling on the phone. But as activist investing has grown in popularity and their tactics become part of the standard executive playbook, activist hedge fund managers and billionaires have been receiving a warmer reception by corporate executives and boards that are more inclined to readily accept their proposals and demands without putting up a fight.
Hedge Fund and Cybersecurity Firm Team Up to Short-Sell Device Maker (The New York Times)
The cybersecurity firm behind a short-seller’s campaign against St. Jude Medical, a major manufacturer of pacemakers, has a curious operating history. The firm, MedSec, says it has been around 18 months. But it was incorporated in the United States in Delaware just last month. Justine Bone, its chief executive, came on board two months ago. And MedSec’s headquarters shares the same address as a virtual office in Miami that provides space to a number of companies. The start-up is at the center of an unusual story line that brings together a Wall Street short-seller and the mysterious world of computer hacking.
Private Equity Is the New Hedge Fund (Bloomberg Gadfly)
Hedge funds have served publicly as this year’s whipping boy for angry investors. They’ve been hammered with some of the biggest withdrawals since the credit crisis and are being forced to drop their fees. Less discussed, however, is just how much private-equity funds have benefited from this. A UBS study published Thursday highlighted this shift in fortunes. About one-third of family offices surveyed have reduced their hedge fund allocations. They showed a particular distaste for credit and distressed strategies, especially after the energy-led corporate-bond selloff last year.
