Juniper Networks Targeted by Activist Investor Elliott (Bloomberg)
Juniper Networks, Inc. (NYSE:JNPR) has been targeted by activist hedge fund Elliott Management Corp., which will seek cost cuts, stock buybacks and other changes at the networking-gear maker. Elliott, a New York fund run by billionaire Paul Singer, has amassed 6.2 percent of Juniper, according to a statement today. The firm is seeking talks with management and the company’s board. Shares of Juniper, the second-largest maker of computer-networking equipment, have trailed the Standard & Poor’s 500 Index over the past three years. The Sunnyvale, California-based company also faces a management transition: Chief Executive Officer Shaygan Kheradpir took over just this month, following the retirement of Kevin Johnson.
Hedge Fund Founder Dondero Faces Former Colleague In Jury Trial (HedgeCo.net)
James Dondero, a co-founder at hedge fund Highland Capital Management, is set to face a jury trial against a former colleague who has an ongoing defamation suit against the firm. The hedge fund issued a statement saying that the former executive, Patrick Daugherty, had “unreasonable compensation demands,” and that he suffered from a “neurological condition.” Previously, Daugherty had testified at Donder’s divorce proceedings (on the side of the wife,) attempting to invalidate a prenuptial agreement. “Our client was hard-working, dedicated, accomplished and worked for Highland for many years with a high level of performance, they’re punishing Pat Daugherty by not paying him.” His lawyer said.
James Dondero of Highland Capital Management
These Hedge Funds Lost A Bundle Betting On Lululemon Athletica inc. (LULU) (Insider Monkey)
Lululemon Athletica inc. (NASDAQ:LULU) shares dropped almost 17% yesterday after the company lowered its fourth quarter outlook because of weak January sales. According to ABC News, Lululemon expected to earn 78 cents to 80 cents per share on revenue of $535 million to $540 million. However, due to slow sales and traffic since the start of January, the company has lowered its quarterly guidance to 71 cents and 73 cents per share and revenue in a range of $513 million to $518 million. Among hedge funds, Ken Griffin of Citadel Investment Group, with his 787,046 shares, has the biggest position in the company. As Lululemon Athletica inc. lost $9 per share today, Griffin also lost about $7 million.
Gold Bulls Put Last Year’s Beating Behind Them (Wall Street Journal)
After a year of carnage in the gold market, some brave investors are betting on a comeback. Hedge funds including San Francisco’s $3 billion Passport Capital have been buying the metal, which plunged 28% in 2013. Vermillion Asset Management LLC, a commodity-focused hedge-fund firm majority-owned by The Carlyle Group LP (NASDAQ:CG) that manages almost $1 billion, expects next month to start its first dedicated metals fund that will include investments in gold and other metals, according to people familiar with the firm. The launch is partly to capitalize on gold’s largest annual decline in 32 years, the people say.
Gibraltar boosts its hedge fund appeal (Gibraltar Chronicle)
The managing director of a Gibraltar-based hedge fund has welcomed news that Gibraltar has become a full signatory to the Multinational Memorandum of Understanding (MMoU) of the International Organization of Securities Commissions (IOSC). Helvetic Fund Administration’s Nicola Smith said the move would strengthen Gibraltar’s position as a gateway into Europe. “The passport system established under the Alternative Investment Fund Managers Directive allows funds to operate throughout the EU once they have received regulatory approval in one member country,” she said.
Activist Investor Takes Bob Evans Farms to Court (New York Times)
The hedge fund Sandell Asset Management is bringing out the big guns. After two foiled attempts to pressure the board of Bob Evans Farms Inc (NASDAQ:BOBE) to make changes to its restaurant and packaged goods business, Sandell is taking the matter to court. On Tuesday, the hedge fund filed a suit against Bob Evans Farms, accusing the board of attempting to strip shareholders of their rights. Sandell owns a 6.5 percent stake in the company, which runs 561 restaurants across the United States and produces packaged foods like bacon, ham and sausages.
Hedge fund managers & sports teams (CNBC.com)
Former Citigroup Executive Joins Hedge Fund as Chairman (New York Times)
John P. Havens, who resigned as chief operating officer of Citigroup Inc (NYSE:C) in 2012 when Vikram S. Pandit was ousted as chief executive, has found a new home. Napier Park Global Capital, the hedge fund business that was spun out of Citigroup, announced on Tuesday that Mr. Havens, 57, had joined the firm as partner and nonexecutive chairman. “John is a seasoned, well-recognized leader in the financial services industry who has always stood for integrity and creating the best solutions to meet the needs of his clients,” James M. O’Brien, co-managing partner of Napier Park, said in a statement. ”Our team will benefit greatly from the full range of his management talent and experience.”
Investors exit hedge funds at fastest rate in four years (Reuters)
Investors pulled out money from hedge funds at the fastest rate for more than four years in December, following a year in which many managers’ performance disappointed, new data showed on Monday. The SS&C GlobeOp Capital Movement Index, which calculates monthly hedge fund subscriptions less redemptions, measured minus 3.56 percent for December, the biggest negative reading since September 2009. While the end of the year period usually sees a pick-up in redemptions as investors look to move money around their portfolio ahead of the new year, December’s reading is notably high. In the same month last year the index measured minus 2.61 percent.
Elliott Maintains Pressure on Riverbed to Pursue a Sale (New York Times)
Elliott Management has a lot on its plate at the moment, including taking on a huge target in Juniper Networks. But the hedge fund has not taken its eyes off Riverbed Technology, Inc. (NASDAQ:RVBD), a maker of networking equipment and software for which it has bid $3.2 billion. In a letter to Riverbed’s board sent on Tuesday, Elliott again urged the company to either accept Elliott’s takeover bid of $19 a share or run an auction for itself. The letter comes as the company’s directors prepare to meet this week, with the activist campaign almost certainly on their agenda.
Hedge fund sues to steer Jos. A. Bank toward deal (MENAFN.COM)
Eminence Capital LLC, a hedge fund, is suing U.S. retailer Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) to block a deal-threatening acquisition, court papers filed in Delaware say. Jos. A. Bank executives have said they were in the market for an acquisition, which would likely derail a 1.6 billion hostile bid for Jos. A. Bank proposed by The Men’s Wearhouse, Inc. (NYSE:MW), the Wall Street Journal reported Monday. Eminence is Men’s Wearhouse Inc.’s largest shareholder, owning 10 percent of the company. It also owns 5 percent of Jos. A. Bank, which has turned down two offers from Men’s Wearhouse and was itself turned away by Men’s Wearhouse in an acquisition saga that began in September.
Meet The Firm Behind The First Hedge Fund Advertisement (EIN News)
When West Coast Hedge Fund Topturn Capital recently hired a professional surfer and commissioned a video to replace an ageing introductory presentation, people took notice. The video, picked up by Fortune.com, Barron’s, CNBC among others, was viewed over 6000 times worldwide in less than 48 hours giving Topturn more visibility and profile than it could have achieved in a year of marketing in the traditional way. The way that alternatives managers present themselves is entering a new era. The JOBS Act means that solicitation is no longer as restrictive as it once was. Topturn recognized that the way in which funds are talking, and investors are listening is fundamentally changing – and for those looking to get noticed in a sea of competition, creativity matters.
