Hedge Funds Clash With Wall Street on Warrants: Argentina Credit (BusinessWeek)
The surge in Argentina’s securities tied to economic growth is rekindling a decade-old disagreement between investors and Wall Street. The warrants, which provide payouts when growth exceeds targets, have jumped 29 percent from a nine-month low in March on speculation a data revision that boosted the size of the economy will lead to bigger payments in the future. While investors are piling into the securities, banks from Citigroup Inc (NYSE:C) to Credit Suisse Group AG (NYSE:CS) say the advance is excessive as the terms of the warrants have enough wiggle room for Argentina to avoid making the larger disbursements.
Here Are The 49 Stocks That Big Hedge Funds Love Most (BusinessInsider)
FactSet is out with its quarterly report on what stocks the 50 largest hedge funds are holding. FactSet notes that these hedge funds increased their equity exposure by 1.9% in the first quarter, and increased their exposure to the most widely held names by 7.5%. Apple, while still being the second-most widely held stock among large hedge funds, was the largest sale for four of the fifty funds, and is the biggest equity position for three funds at the end of the first quarter, down from six in the fourth quarter of 2013.
Arden Wins Mass. Hedge-Fund Consulting Role (Finalternatives)
Massachusetts’ main public pension fund is sticking with Arden Asset Management. The firm is expected to be tapped as the Massachusetts Pension Reserves Investment Management Board’s hedge fund adviser, it said yesterday. The mandate is expected to be finalized by the $58 billion pension’s board next month. Arden has managed MassPRIM’s transition from fund of hedge funds to direct hedge fund investments for the past two years. The firm was previously a fund of funds manager for the pension.
Brazil World Cup Win Risks Stock Losses in Boon to Rousseff (Businessweek)
Hedge-fund manager Luiz Carvalho can’t quite bring himself to root against his home country of Brazil in next month’s World Cup. Still, it’s awfully tempting. A defeat for the five-time winners of soccer’s championship would be a blow to President Dilma Rousseff’s re-election bid, Carvalho said, bolstering the chances for a new government that would be friendlier to investors after the worst economic performance of any administration since 1992. As polls started showing Rousseff losing popularity before October’s vote, Brazilian stocks have posted the best returns in dollar terms among the world’s major equity indexes since mid-March, rebounding from a bear-market bottom.
Oil States ‘man-camp’ spinoff faces uncertain growth outlook (Reuters)
As Oil States International Inc prepares to spin off its oilfield housing unit next week, the new company’s uncertain growth prospects cast doubt on whether the energy industry’s trend toward such corporate breakups is a true “one-size-fits-all” solution. The spin-off, which follows pressure from hedge fund Jana Partners LLC in an attempt to unlock value, is expected to be quickly followed by a conversion to a real estate investment trust (REIT). That step would bring tax benefits but limit cash available for growth projects. Oil States became one of the largest players in the so-called “man camp” accommodations business, amassing more than 20,000 dormitory-style rooms across remote parts of Canada, Australia and the United States for roughneck workers at Imperial Oil Ltd, Vale and others.
Carl Icahn Reduced His Netflix Stake by 15%. So What? (Fool)
Every quarter, large money-managers have to disclose what they’ve bought and sold via “13F” filings. While Fools don’t always (or even usually) follow what the big money does, we can often glean an idea or two by tracing their footsteps. Carl Icahn has made a boatload on his investment in Netflix, Inc. (NASDAQ:NFLX), and he has cashed in some of his chips again, selling around 421,000 shares in the first quarter, according to the most recent 13F filing. If Icahn sold Netflix at the quarterly peak of $485, that’s a cool $193 million, versus $138 million at the lowest price of the quarter, $328.71:..
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