A Fitter Perrigo Is in Activists’ Interest (The Wall Street Journal)
Activist investors have the facts on their side in a tussle with Perrigo, but they may want to sharpen their focus. The hedge fund Starboard Value has accumulated a 4.6% stake in the embattled drug company and is urging it to consider selling certain assets, which would reduce leverage and better streamline the company’s portfolio. Perrigo shares rose on the news. Perrigo’s performance certainly has earned it an activist intervention. The company has slashed its earnings forecasts three times since shareholders voted to reject a hostile takeover offer from Mylan NV last year.
Bridgewater Said to Get $22.5 Billion in New Money Since ’15 (Bloomberg)
Bridgewater Associates LP, the world’s largest hedge fund manager, has attracted $22.5 billion in client money since it started a new strategy early last year, according to a person familiar with the matter. About three-quarters of the money went to the new fund — a combination of the firm’s two main strategies known as the Optimal Portfolio — which was started in early 2015, said the person, who asked not to be identified because the information is private. The remainder went into the firm’s main macro hedge fund, Pure Alpha, after Bridgewater opened that fund to select investors this year.
SolarCity Raises $305 Million In Deal Advised By Soros’ Firm (Reuters)
Solar panel installer SolarCity Corp (SCTY.O), which is being bought by Tesla Motors Inc (TSLA.O), on Monday said it had raised $305 million by selling the future cash flows for a portfolio of solar projects to a fund advised by billionaire investor George Soros‘ hedge fund. Shares of the company, which is backed by Tesla founder Elon Musk, were up 7.4 percent at $18.00 in afternoon trading on Monday as investors cheered the solar company’s ability to raise funds to fuel its rapid expansion. The stock remained far below the $25.37 a share at which Tesla’s stock swap proposal values SolarCity.
Some of the Biggest Hedge Funds Are Bleeding Cash (Bloomberg)
Richard Perry, who started his hedge fund 28 years ago, has seen assets in his Perry Capital shrink to $4 billion, from $10 billion last September. That 60 percent drop comes as the firm’s main fund fell 18 percent from the end of 2013 through July. Perry isn’t the only manager struggling. John Paulson’s assets, on the decline since 2011, are down an additional 15 percent this year. And Dan Och, who like Perry cut his teeth at Goldman Sachs Group Inc., is now managing $39.2 billion at his Och-Ziff Capital Management Group, compared with $44.6 billion at the start of the 2016.
Investing Giants Head to Delivering Alpha as Fed, Election Loom Large (CNBC)
Giants of investing, business and policy will talk about the state of markets and the U.S. economy at the Delivering Alpha conference Tuesday in New York City. Top investing minds will discuss where they see opportunities in a U.S. stock market that is floating near all-time highs. They’ll also give their thoughts on navigating the risks posed by a key Federal Reserve meeting next week and the looming presidential election. Here are some of the key speakers at this year’s event, which is presented by CNBC and Institutional Investor.
Ex-Farallon’s Brantberg Said Hiring for Startup Hedge Fund (Bloomberg)
Mikael Brantberg, a former managing director at Farallon Capital Management, has hired four senior executives as he prepares to start his own London-based hedge fund by the end of the year, according to a person with knowledge of the matter. Brantberg has recruited Farallon colleague Joachim Bale, as well as Thomas Metscher, who is leaving Pamplona Capital Management to join the new fund to be called Lodbrok Capital, said the person, asking not to be identified because the information is private. Bale and Metscher are part of the investment team.
Ex-SAC Trader Said to Shut Hedge Fund Backed by Alibaba Founders (Bloomberg)
Andrew Bazarian, a former employee at billionaire investor Steven A. Cohen’s firm, will shut his Asia-focused hedge fund whose backers include a firm that invests money for Alibaba Group Holding Ltd. executives, according to people familiar with the matter. Bazarian opted to close Pinyin Capital Management Hong Kong Ltd.’s hedge fund after it lost money this year, making it difficult to attract additional investors, and its biggest backer Blue Pool Capital decided to withdraw its capital, said the people, who asked not to be identified because the information is private.
