Editor’s Note: Related tickers: Facebook Inc (NASDAQ:FB), Dell Inc. (NASDAQ:DELL), MGIC Investment Corp. (NYSE:MTG), Radian Group Inc (NYSE:RDN), eBay Inc (NASDAQ:EBAY), Time Warner Inc. (NYSE:TWX), DIRECTV (NASDAQ:DTV)
Hedge funds led by Paulson & Co. and Maverick Capital are piling into mortgage insurers in a bet that some of the companies worst hit by the U.S. housing crash will be among the biggest winners in the rebound. Maverick, run by Lee Ainslie, added 23.6 million shares of MGIC Investment Corp. (NYSE:MTG) in the first quarter as the stock almost doubled, according to regulatory filings. Billionaire John Paulson’s $18 billion hedge-fund firm acquired 17 million shares of MGIC Investment Corp. (NYSE:MTG) and 8 million of rival Radian Group Inc (NYSE:RDN)
Facebook Struggles to Satisfy Investors About Mobile Earnings (BusinessWeek)
Facebook Inc (NASDAQ:FB) marked its first anniversary as a public company on May 17, and investors had little reason for merriment. Through May 14 shares were down 29 percent from the initial public offering price of $38, making Facebook Inc (NASDAQ:FB) the fifth-worst performer of the 124 stocks that debuted during the same period, according to data compiled by Bloomberg. Among companies that raised $200 million or more in an IPO, the social network ranks last. It could be worse: The stock has climbed more than 50 percent from its September low and has a market value of $65 billion—behind eBay Inc (NASDAQ:EBAY) at $73 billion and ahead of Time Warner Inc. (NYSE:TWX) ($57 billion) and DIRECTV (NASDAQ:DTV) ($36 billion). Yet a year after the company raised $16 billion in the largest technology IPO on record, investors remain concerned about its ability to generate earnings as a growing number of users shift from personal computers to smartphones and tablets…
Dell Committee Renews Call for Details on Icahn Takeover Bid (BusinessWeek)
Dell Inc. (NASDAQ:DELL)‘s special committee reiterated its call for billionaire Carl Icahn to provide more details regarding his proposal to take over the personal-computer maker. In a letter today, the committee said it can’t respond to Icahn and won’t engage in talks unless the board decides that his bid could result in a “superior proposal” over founder Michael Dell’s $24.4 billion offer. …On May 13, Dell Inc. (NASDAQ:DELL)’s special committee asked Icahn and his partner Southeastern Asset Management Inc. for more information about his takeover plan, which involves borrowing money for Dell Inc. (NASDAQ:DELL) to offer $12 a share in cash or stock to investors, while also letting them retain stakes in a public company. The payout would dilute existing Dell Inc. (NASDAQ:DELL) shares, which Icahn has said would have a value of at least $1.65 apiece.
London remains Europe’s hedge fund capital as UCITS funds increase (HedgeWeek)
TheCityUK’s Hedge Funds 2013 report also shows that London retains its position as Europe’s hedge fund capital, and is second only to New York for global hedge fund management with 18 per cent of the global share. According to TheCityUK, hedge fund activity levels in London and Europe have held firm following the rise in UCITS compliant hedge funds, which will not be subject to the incoming Alternative Investment Fund Managers Directive (AIFMD).
Peak6 $1bn capital raise boosted by Aussie instos (FinancialStandard)
US hedge fund manager Peak6 has soft-closed its new Achievement fund after attracting significant inflows from Australian investors. The fund, which launched in September 2012, has already reached the $1 billion in funds under management (FUM) milestone after receiving significant support from Australian superannuation funds and one unnamed family office. Peak6 estimates that Australian client money accounts for around 7% of the fund’s total FUM. The strategy, which is headed-up by hedge fund veteran Joe Scoby, will now pause for breath, closing its doors to new investors.
Hedge fund managers face the hazards of poker (FierceFinance)
Image counts a lot in the hedge fund industry. So if you are a hedge fund manager and you let it be known that you also play poker, you had better play pretty well. Poker is taken quite seriously in the industry. Success in poker is something that you would definitely want on your resume. Hedge fund managers like David Einhorn have adroitly used their poker playing prowess to burnish their personal brands. He finished third at the World Series of Poker last year, and was likely pleased with the media coverage, which noted that he planned to give his $4.4 million in winnings to charity.
