When hedge fund guru speaks, the world listens (WAToday)
The short sellers’ favourite short seller, Jim Chanos packs more punch than the $US6 billion in funds he oversees. The market veteran first came to prominence in Australia by raising doubts over the Macquarie model – precisely as the investment bank’s share price was marching steadily towards $100. At the time, Chanos told a gathering of New York hedge funds that his Kynikos Associates had sold off its Macquarie holdings, declaring the investment bank had ”an inherently unstable platform” and saying it ”doesn’t care what it pays” for the infrastructure assets it acquired on behalf of its unlisted and listed funds.
Hedge fund to back Chinese takeover of Smithfield (GlobalPost)
Starboard Value said Friday it was giving up its attempt to block the sale of US pork giant Smithfield foods to China’s Shuanghui, making approval of the $7.1 billion takeover likely. The hedge fund said in a filing with the Securities and Exchange Commission that it was not able to bring together an alternative bid in time before the September 24 Smithfield Foods, Inc. (NYSE:SFD) shareholder vote on the deal.
Co-op forced to consider hedge fund plan (TheGuardian)
Two US hedge funds have forced the Co-operative Bank to set up an independent committee to review the American investors’ plan to turn the 140-year-old mutually owned bank into a listed company. One of the hedge funds, Aurelius Capital Management, is best known for a long-running battle to force Argentina to pay out $1.3bn (£800m) while Silver Point Capital has been linked to a number of troubled financial firms such as Lehman and Iceland’s Glitnir.
Jana Partners Discloses Safeway Stake (PerishableNews)
Hedge fund Jana Partners LLC disclosed in a regulatory filing on Tuesday that it had acquired a 6.2 percent stake in grocery chain Safeway Inc. (NYSE:SWY). Jana said it has held talks with Safeway management about reviewing strategic alternatives for the Pleasanton, California-based company and that its shares are undervalued. The hedge fund also said it has spoken with Safeway about exiting lower margin geographies. Safeway said on Tuesday it had adopted a so-called poison pill to prevent an unwanted takeover of the company.
Buffett Calls Federal Reserve History’s Greatest Hedge Fund (Bloomberg)
Billionaire investor Warren Buffett compared the U.S. Federal Reserve to a hedge fund because of the central bank’s ability to profit from bond purchases while accumulating a balance sheet of more than $3 trillion. “The Fed is the greatest hedge fund in history,” Buffett told students yesterday at Georgetown University in Washington. It’s generating “$80 billion or $90 billion a year probably” in revenue for the U.S. government, he said. “And that wasn’t the case a few years back.”
Nikkei: Third Point to put Sony shares under own name (HedgeWorld)
Activist investor Daniel Loeb’s Third Point LLC will re-register a chunk of its shares in Sony Corporation (ADR) (NYSE:SNE) under its own name, allowing the hedge fund group to file shareholder resolutions and take other steps to push for better management, the Nikkei reported, quoting people familiar with the matter. The move follows Sony’s rejection last month of a proposal by Loeb that the electronics giant spin off part of its entertainment business. New York-based Third Point owns about 7 percent of Sony under different names.
‘We’re 100 percent out of Apple’: Hedge-fund manager (CNBC)
Red Kite founder Lewnowski spins off $1.14B mining fund (AMM)
Oskar Lewnowski, a founding partner of Red Kite Group, has spun off one of the trader and hedge fund’s two mine finance vehicles and resigned from the company. Following a mutual management decision to separate the mine finance business, Lewnowski and a team of former Red Kite partners will run the $1.14-billion RK Mine Finance Fund II as the Orion Mine Finance Fund I. The RK Mine Finance Fund I will continue to be managed by David Lilley, Michael Farmer and Harry Tefoglou, while Grant Gilmour and Paul Coughlan will join the fund’s investment committee, a Red Kite spokesman said…
Clive Capital Fund Plans to Close After Two Years of Losses (BusinessWeek)
Clive Capital LLP, the $1 billion commodity hedge-fund firm founded by Chris Levett, plans to close after posting more than two years of investment losses, according to a letter to clients. Clive told investors today the London-based hedge fund will shut down at the end of the month, according to the letter, which was obtained by Bloomberg News. The Clive Fund’s Class A shares fell 9.1 percent this year through Sept. 18 after declining 8.8 percent in 2012 and about 10 percent in 2011.
Soros’ Ex-Wife’s Majestic Pad Now $11 Million Cheaper (Curbed)
Billionaire George Soros’ ex-wife Susan Weber Soros listed her furnished 5BR/6.5BA in the Majestic back in October for $50 million. She chopped the price to $45 million in February and eventually took the apartment off the market. Now the Wall Street Journal is reporting that she is re-listing it with yet another price reduction—to $39 million. Soros is also switching brokerages, from Halstead to Town, although to new listing isn’t up on Town’s website yet.
Icahn Channels Churchill in Critique of Boardroom Politics (WallstCheatSheet)
“I’m no political scientist, but it doesn’t take a genius to understand that voting is crucial to democracy. When things aren’t going well, citizens can vote the leaders out. A lot of blood has been shed for these rights, and while democracy isn’t perfect, to paraphrase Winston Churchill, it’s far better than any other system of government,” wrote activist investor Carl Icahn in a September 18 Wall Street Journal editorial.
Marc Faber’s Biggest Mistake (WSJ)
The longtime Swiss fund manager Marc Faber has made a killing for years, making very pessimistic—but very correct—calls about the market, to the benefit of his $300 million fund. But by his own admission, “Dr. Doom” hasn’t done so well in the friends department. The 67-year-old, ponytailed investor recalled the time he invested $100,000 in a pal’s publishing firm, only to discover that his friend had held the copyrights under his name, and not the company. The result: His (now former) friend more than doubled his money when he sold the rights five years later, while Faber only got his money back.
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