Why James Chanos Is Short Valeant, Long Allergan (WSJ)
Short-seller James Chanos said he’s betting against shares of Valeant Pharmaceuticals Intl Inc (NYSE:VRX) -2.92% amid its unsolicited $46 billion bid for Allergan, Inc. (NYSE:AGN) -0.87%, saying the company is “playing aggressive accounting games.” Mr. Chanos, founder of hedge fund Kynikos Associates, criticized Valeant’s acquisition strategy, noting the pitfalls and potential accounting issues associated with relying on deals for long-term growth. He also suggested Valeant may be bidding against itself in its pursuit of Allergan, a stock which he said he is long. Valeant earlier this week said it would improve its offer for Allergan after the initial bid was rejected.
Carl Icahn’s Fund Down In First Quarter As Winning Streak Ends (Forbes)
At the age of 78, billionaire Carl Icahn has been running circles around most hedge fund mangers in recent years. With winning bets on the shares of companies like Chesapeake Energy Corporation (NYSE:CHK) -2.29% and Netflix, Inc. (NASDAQ:NFLX) -1.63%, it has been a very strong stretch for Icahn, who has helped usher in a golden age for the activist investing style he helped invent. But in the first quarter of 2014, Icahn’s winning streak came to an end. Icahn’s investment fund, which he uses to bet on stocks with his own money and money belonging to his publicly-traded Icahn Enterprises, fell by 0.4% in the first three months of the year, according to an investment presentation released by Icahn Enterprises LP (NASDAQ:IEP).
Join us for HedgeCo’s May Hedge Fund Networking Event in NYC on Thursday (HedgeCo)
We’re pleased to announce HedgeCo in conjunction with Alternative Assets will be hosting the Third Thursday Hedge Fund Social event on May (5/15) in New York City. The HedgeCo Networking Events are a chance for investors, hedge fund managers, and other industry professionals to come together and enjoy a night of sharing ideas and meeting new contacts. Recognized as having the largest attendance for any type of event in the hedge fund industry, the HedgeCo Networking Events have quickly become the top destination for generating new business and meeting new industry contacts. Space is limited for this event so please RSVP to reserve your place!
Billionaire: Heiress ex is faux-poor (PageSix)
Annabelle Bond may be crying poverty, but she could be the most pampered, high-maintenance heiress in the world, according to court papers filed on behalf of her ex-boyfriend, Warren Lichtenstein. Annabelle’s father, Sir John Bond, who built HSBC Holdings plc (NYSE:HBC) into a banking colossus, is a billionaire. Her boyfriend, Andrew Cader, co-owner of the Tampa Bay Rays, has hundreds of millions of dollars. And Lichtenstein, who runs the Steel Partners hedge fund, is also a billionaire. Lichtenstein, repped by lawyer Stanley Arkin, is seeking in Manhattan Supreme Court to prevent the enforcement of a one-time $600,000 child-support judgment that Bond, 44, obtained in Hong Kong.
A look behind the curtain hiding Tom Steyer’s fortune (WashingtonExaminer)
Silicon Valley billionaire Tom Steyer has generated lots of adoring coverage in the mainstream media with his promise to spend $100 million to elect Democrats who oppose the Keystone XL pipeline. Fighting Keystone, which would carry millions of barrels of Canadian tar sands oil south to U.S. refineries, is just one part of Steyer’s activism on behalf of “green” energy and against fossil fuels, including coal and natural gas. Outside of the mainstream media, however, independent journalists and bloggers are doing deep-dive research into how Steyer made his own fortune running the Farallon Capital Management hedge fund.
Cramer digs into Tepper’s warning (CNBC)
Business Execs Skeptical Of Christie’s Chances (HudsonHubTimes)
New Jersey Gov. Chris Christie is dismissing his administration’s traffic scandal as “a footnote” in his political future. Some in the GOP’s elite business class may be close to dismissing him as a serious contender for the party nomination in 2016. Shortly after Christie discussed his White House ambitions in Washington on Wednesday, Republican donors gathered for a hedge fund conference in Las Vegas shared a decidedly pessimistic view of Christie’s presidential prospects. Even self-proclaimed Christie fans said his political brand probably has suffered permanent damage, acknowledging they’ve been forced to look elsewhere for a business-friendly presidential contender.
Kyle Bass’ Hayman Capital Changes Many Holdings – GM, Verizon, NRG, AMR and More (247WallSt)
Kyle Bass of Hayman Capital Management has been busy in the first quarter portfolio changes. The value of stocks held as of March 31 was $1.042 billion. The group’s 13F filing three months ago showed that Bass’ year-end holdings were $774.7 million. Investors need to keep in mind that the hedge fund listed only 26 issuers, so 7 big changes in a quarter is some real turnover. Perhaps the biggest change was in General Motors Company (NYSE:GM). The holdings at the end of 2013 were listed as warrants for shares, but Bass added 32,000 more call options and also had just over 7.086 million shares. At the end of the first quarter the GM position was worth some $243.9 million…
Ousted Director Rejoins GrafTech Board (NYTimes)
Investors of GrafTech International Ltd (NYSE:GTI), the small steel company at the center of a swirling corporate governance debate, have re-elected an ousted director to the board, along with his two of his allies. At the company’s annual meeting on Thursday, shareholders elected Nathan Milikowsky, who owns 11.2 percent of the company, reinstating him to the board more than a year after he was ousted amid allegations he leaked confidential information to a hedge fund. Two of Mr. Milikowsky’s allies, David Jardini and Karen Finerman, were also elected to the board. Investors did not re-elect several existing GrafTech board members, including the former chief executive Craig Shular and the former board chairwoman Mary Cranston. Mr. Shular and Ms. Cranston had led the campaign against Mr. Milikowsky, which ended in his dismissal.
Russia-Focused Hedge Funds Fall Sharply (Finalternatives)
Russia may be withstanding international sanctions over its annexation of the Crimea, but hedge funds focused on the country are not. The sanctions imposed since Russia’s occupation of the Ukrainian territory have failed to have the bite that Western leaders hoped for. But they have sent the country’s stock market into a tailspin, one that has taken hedge funds investing in Russia with it. Moscow-based Prosperity Capital is down 16.2% through April 24, The Wall Street Journal reports. Firebird Management, which is based in the U.S. but invests in Russia and Eastern Europe, has seen its main fund lose 14.3%.
David Paredes Found His Zen After Losing Friend, Bankroll & Job (Bluff)
David Paredes might not be a household name in broader poker circles, but he’s a player on the rise and is currently sixth in the North American Triple-A Player of the Year standings. He’s quietly amassed $1.4 million in live tournament earnings and netted his largest live score to date in January. …Paredes’ hedge fund career did manage to last over two years before he was laid off. But even while he was working and not really playing cards he still had poker on his mind. “I did like it (the job) and I learned a lot, but I really loved poker,” he said. “I’ve always had a huge passion for the game. I’ve never had one day of playing poker where I thought of it as work, it’s always been fun for me.
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