Druckenmiller Making ‘Large Bet On Economic Growth’ On Trump Win, Sells Gold (CNBC)
Billionaire investor Stanley Druckenmiller shared his views on the election and the market in an exclusive interview Thursday with CNBC’s “Squawk Box.” On the election: “I’m very hopeful and optimistic on what it means. … The fears of protectionism, while valid, are greatly oversized relative to the benefits to the other parts of the economy [from deregulation and tax reform],” he said. He added, “This economy is so over regulated and people are just drowning in red tape, that the removal of that, and I’m expecting serious tax reform, cuts to the corporate tax rate. … So I’m quite, quite optimistic on the economy.”
Activist Ackman Calls Chipotle Relationship ‘Extremely Constructive’ (Reuters)
Billionaire investor William Ackman on Thursday said he has had an “extremely constructive relationship” with Chipotle Mexican Grill Inc (CMG.N) since buying a large stake in the beleaguered burrito seller. Shares in Chipotle were up 6 percent at $391.70 in midday trading, buoyed by Ackman’s comments and the expectation that the company could benefit from business-friendly tax reforms expected to be championed by President-elect Donald Trump. Ackman’s Pershing Square Capital Management announced a nearly 10 percent stake in Chipotle in September. His team believes that marketing, menu, cost-saving, technology and governance initiatives will help the shares rebound from a 40 percent swoon since last year’s high-profile food safety lapses.
Billionaire Peltz On The Election, Market Volatility And Trump’s Next Policy Steps (CNBC)
Billionaire hedge fund manager Nelson Peltz shared his views on the market and what policies will come from a Donald Trump presidency in an exclusive interview with CNBC’s Scott Wapner on Wednesday. Peltz is chief executive officer of Trian Fund Management. The firm manages more than $10 billion, according to its website. On Trump’s possible policy moves: “He’s got to take the easy wins first, which is upgrading our infrastructure. … Repatriating the corporate cash, finally finally let’s bring it home. And I think Donald will get some corporate tax reform, which I think will actually create more jobs,” he said.
RAY DALIO: ‘There Is Much More That We Don’t Know Than We Do Know’ (Business Insider)
The world’s biggest hedge fund isn’t sure yet what to make of Donald Trump’s election to the US presidency. That’s the big takeaway from an investor note that Bridgewater Associates founder Ray Dalio sent on Thursday, two days after Election Day. “There is much more that we don’t know than we do know,” Dalio wrote in a client letter viewed by Business Insider. “Our guess is that the markets will increasingly focus on what he is likely to do and less on how sensible he sounds.” Dalio added that Trump’s win meant there were “a significantly wider range of possible policies” to consider — adding a wrench into market predictions. “It would be a mistake to use the rhetoric of a campaign as much of a guide to what policies are likely,” Dalio added. “We have entered an extremely ambiguous and interesting period of time.”
Icahn Left Trump Victory Party to Bet $1 Billion on Stocks (Bloomberg)
As Donald Trump celebrated his surprise election win over Hillary Clinton and equity futures swooned in response, billionaire investor and Trump supporter Carl Icahn headed home to start trading. Icahn, 80, left President-elect Trump’s victory party in the early hours of the morning to bet about $1 billion on U.S. equities, he said Wednesday in a telephone interview on Bloomberg TV. “I would have tried to put a lot more to work, but I couldn’t put more than about $1 billion to work, and then the market got away. But I’m still happy about it,’’ Icahn said. “The S&P was so liquid — it was unbelievably liquid — the world was going nuts. Last night it was amazing, the world was going into a panic with no reason.”
For Hedge Fund Investors, Calm Uncertainty Over Trump’s Direction (The New York Times)
Wilbur Ross, the contrarian billionaire investor, stood in a sea of red caps early Wednesday morning at the New York Hilton Midtown hotel in Manhattan as Donald J. Trump took the stage. Mr. Ross, who played a role in raising money from Wall Street executives for Mr. Trump’s presidential campaign, was celebrating the New York billionaire’s surprising election victory over Hillary Clinton. “I got home in the wee hours of the morning,” Mr. Ross, 78, said. But there was not much time for sleep as Mr. Ross, an economic adviser to Mr. Trump, was busy juggling interviews with various news outlets later that morning to discuss the president-elect’s legislative plans for the early days of the new administration.
After Starboard Prodding, Perrigo Considering Strategic Alternatives for MS Drug (The Wall Street Journal)
Perrigo Co. acquiesced to an activist investor demand and said it was considering strategic alternatives for one of its drugs, and it swung to a quarterly loss, hurt by charges. Perrigo said it was exploring strategic alternatives for the lucrative royalty stream rights for its multiple sclerosis drug Tysabri. The Wall Street Journal reported in September that Starboard Value LP built a 4.6% stake in Perrigo and then urged the drug company to refocus on its core business including by selling those Tysabri rights. Perrigo also said Thursday it would appoint two new independent board members and that it was on track to complete a strategic portfolio review of its segments, market positions and growth prospects by the first quarter of 2017.
Carl Icahn Says Bill Ackman Is ‘Dead Wrong’ About Herbalife (HLF) (TheStreet)
Weight management product manufacturer and multilevel marketing company Herbalife (HLF) has come under fire for appearing to be a pyramid scheme. However, Herbalife “is undervalued” and “serves a purpose,” Icahn Enterprises Chairman Carl Icahn argued on CNBC’s “Halftime Report” on Wednesday. “The model has worked for many, many years in many countries. It certainly makes for employment,” Icahn said. The company’s products are “good,” and its vitamins have helped prevent Icahn from getting a cold, he claimed. Herbalife announced last Tuesday that Michael Johnson would be resigning as CEO at the end of May.
