Peltz May Aim For Seat At GE (TheStreet)
Peltz is that rare breed of insurgent known as “operational activists” because his track record as an operator sets him apart from “financial activists,” investors from a hedge fund background who focus on urging capital distributions or spinoffs. That history suggests that many institutional investors would support his efforts to hike share price value at GE. Also, Peltz’s escalation, if accurate, represents a shift in relations between Immelt and the activist investor. At a governance conference in June organized by The Street and The Deal, Peltz said Immelt urged him to make an investment in GE. Peltz agreed after reviewing the company’s operations, but the fund’s white paper also urged the company to make some commitments. Trian, at the time, suggested that GE could be on a path to create between $40 and $45 a share of “implied value” by the end of 2017, significantly higher than the company’s current $30 a share trading price.
Bill Ackman Is Selling His Entire Stake In Valeant Pharmaceuticals (Business Insider)
Bill Ackman is leaving Valeant Pharmaceuticals. The billionaire founder of hedge fund Pershing Square, who was once the company’s biggest cheerleader, has sold his investment and will step down from the Valeant’s board until its upcoming election. The stock is falling in after hours trading on this news. Jefferies will be handling the transaction for Ackman, selling 27.2 million shares valued at $306,400,000, or $11.10-$11.40 per share. Sources tell Business Insider that Jefferies is indicating interest on half the stock and is on the hook for the balance that doesn’t get paid. The stock closed Monday at $12.10. CNBC’s David Faber first reported the news, citing sources.
Ray Dalio Not Giving His Principles Away Anymore (DealBreaker)
For years, Ray Dalio has lived the spirit of radical transparency, offering his philosophy of life and work to all in the form of a free PDF on his website. After all, would not the world be a better place if everyone just stripped down to the skin (metaphorically!) and lived by such Principles as, “trust in truth,” “have integrity and demand it from others,” “don’t treat all opinions as equally valuable,” “constantly compare your outcomes to your goals,” “don’t let people off the hook,” “evaluate people accurately, not ‘kindly,’” and “firing people isn’t such a big deal.” What better way to get the whole world living Principled lives than to give it to people free of charge? Especially when you are a billionaire many times over and don’t need the money?
Activist Investor Sarissa Targets Three Innoviva Board Seats (Reuters)
Sarissa Capital Management LP said on Monday it plans to nominate three directors to Innoviva Inc’s (INVA.O) board and criticized the drug company’s cost structure as the two sides square off in a proxy contest. Innoviva said last week that Sarissa Capital had nominated four candidates to replace a majority of the drug company’s directors. Sarissa, founded by Carl Icahn protege Alex Denner, said on Monday that Innoviva’s press release was “preemptive” and that it does not seek control of the company’s seven-member board. Sarissa owns 2.72 percent of Innoviva, according to Thomson Reuters data. Innoviva, which had 14 employees as of Dec. 31, according to its annual report, is a $1.4 billion company with a partnership with Britain’s GlaxoSmithKline Plc (GSK.L).
Hedge Fund Brevan Howard Seeks Injunction To Block Reuters Story (Reuters)
Brevan Howard Asset Management, a British hedge fund, has sought an injunction to prevent Reuters publishing a story that the firm says is based on confidential information. A spokesman for Brevan Howard, one of Europe’s biggest hedge fund management firms, did not immediately respond to a request for comment on Monday. A Reuters spokeswoman said: “Our objective is to publish news and information in the public interest, which we believe outweighs any confidentiality concerns in this matter.” Under Britain’s legal system, individuals and companies can file for privacy or confidentiality injunctions to try to stop the media publishing information that they say is confidential.
Carl Icahn Not Too Worried About Not-So-Major Motion Picture Event (DealBreaker)
“Betting on Zero,” the movie documenting Bill Ackman’s heroic but so far (for him, anyway) tragic battle against the scourge of truth, justice and the American way, Herbalife, is coming to a theater near you on Friday. Well, it is if you live in New York, L.A., Houston, Dallas, Denver, Santa Fe, Columbus or southeastern Westchester, anyway. Otherwise, it’s just coming to your iTunes. In any event, this cinematic activism (or, as Herbalife—which made sure to buy “bettingonzero.com” before Ackman’s filmmaker could—would have it, “a misleading infomercial paid for by a billionaire hedge fund manager”) is Ackman’s latest effort to kill the apparently immortal diet-shake purveyor, which can survive a giant FTC fine and finding that it’s basically the pyramid scheme Ackman says it is but not in a semantic sort of way, and even turn that to its advantage.
Elliott’s Evergreen Financed Part Of Vista’s DH Corp Deal: Sources (Reuters)
Elliott Management‘s private equity division was among the firms that provided financing to Vista Equity Partners for its $3.6 billion purchase of Canada’s DH Corp. (DH.TO), according to people familiar with the matter. Evergreen Coast Capital Corp., the private equity group within Elliott that the hedge fund has expanded in the last year, offered around $400 million in preferred equity for the deal, people familiar with the matter said. Elliott declined to comment. A Vista spokesman did not immediately return a call seeking comment. (Reporting by Michael Flaherty; editing by Diane Craft).
Tom Steyer, A Billionaire With Surprising Rules For Winning (CNBC)
Tom Steyer became a billionaire by solving puzzles. That wasn’t his technical job description – he actually founded Farallon Capital, a hedge fund in San Francisco, 30 years ago. As an investor, two signature moves stand out: One, he got his alma mater, Yale, to invest a portion of its endowment with him; the success of that arrangement sparked a trend. Two, he often made his own luck by investing deeply in countries and industries. As Steyer scouted unusual investments in unexpected places, he followed some basic rules. Now that Steyer has set his sights on politics and policy – he’s rumored to be considering a run for California governor – I sat down with him for Fortt Knox. He gave me some of his best insights on how to succeed, and why he’s fighting the new administration in Washington, D.C.
