WHITNEY TILSON: I Am More Confident In My Herbalife Short Than Ever Before (BusinessInsider)
Hedge fund manager Whitney Tilson, who runs Kase Capital, says he has “more confidence” in his Herbalife position following Bill Ackman’s latest presentation. Yesterday, Ackman presented a 250-plus slide presentation that he had billed as a “death blow” to Herbalife. Ackman has been loudly and publicly short Herbalife for more than 18 months. So far, the short position hasn’t played out in Ackman’s favor and he’s racked up hundreds of millions in paper losses.
Carl Icahn makes $234 million as Bill Ackman misses with Herbalife show (LiveMint)
Bill Ackman handed Carl Icahn a big reason to think fondly of the hedge-fund manager, a week after the two staged a public reconciliation over disagreements that stretch back a decade. Icahn, 78, made $234 million on Tuesday on his stake in Herbalife Ltd. (NYSE:HLF), as a three-hour-plus presentation by Ackman in New York, meant to show that the company is a fraud, failed to convince the market. Instead Herbalife shares rocketed more than 25% to $67.77, their biggest single-day gain. Icahn is the largest shareholder in the company with a 17.3% stake.
A Boston Hedge Fund Just Made $950 Million On One Stock Today (BusinessInsider)
Shares of Puma Biotechnology Inc (NYSE:PBYI) are going absolutely bonkers this morning following a successful trial of a breast cancer drug. The stock surged about 283%, or about $167, since the opening bell. At least one hedge fund is probably really pleased with this investment. The largest shareholder of Puma Biotechnology is Adage Capital Management, a Boston-based hedge fund founded by Phil Gross And Robert Atchinson. According to the latest 13F data, Adage last held 5,686,668 shares. That means they have made about $950 million on the position since the opening bell today.
BlueMountain Calls Puerto Rico Debt Move Unconstitutional (Finalternatives)
BlueMountain Capital Management has sued to overturn Puerto Rico’s controversial new public debt-restructuring law. The hedge fund, which owns more than $400 million in Puerto Rico Electric Power Authority bonds, argues that the law, approved last month, is unconstitutional. Its lawsuit, filed yesterday in San Juan federal court, follows complaints from Franklin Templeton Investments and OppenheimerFunds that also challenge the constitutionality of the law.
Argentina Just Played Its Final Card… And It Lost (BusinessInsider)
Argentina had one card to play left in its battle against hedge fund creditors, and it just lost. Judge Thomas Griesa said that a New York Court will not grant Argentina a stay on payment to bondholders as it attempts to negotiate the payment of over $1.3 billion worth of bonds owed to a group of hedge fund creditors referred to collectively as NML. Now The Republic has until July 30th to either pay all its bondholders including NML, negotiate with NML to the creditors’ satisfaction, or default on its debt.
Great week to be a billionaire (CNBC)
Fortress Clash With Life Insurers Spills Into Statehouses (BusinessWeek)
Fortress Investment Group LLC (NYSE:FIG) has taken its clash with life insurer The Phoenix Companies, Inc. (NYSE:PNX) from the courthouse to the statehouses as the firm seeks to salvage a bet on policies with a face value of more than $1 billion. The private-equity and hedge-fund manager, which purchased policies on the secondary market, has proposed rules to make it harder to cancel insurance and to mandate the return of premiums if coverage is voided. While efforts stalled in states such as Florida and Connecticut, an attorney for Fortress cited progress in Delaware where a proposal advanced from a house committee, only to die as the legislative session ended three weeks ago.
Hedge Fund-Backed Bank Bought (Finalternatives)
Two banks rescued by hedge and private-equity funds during the financial crisis are set to merge in a deal that will see those saviors earn more than $3 billion. CIT Group said yesterday that it would buy OneWest Bank for $3.4 billion in cash and stock. OneWest—formerly known as IndyMac Bank—is owned by a consortium led by Paulson & Co. That group, which also includes J.C. Flowers & Co., MSD Capital, Soros Fund Management, Dune Capital Management and Stone Point Capital, bought OneWest in 2009.
Hedge Fund Forum on Diversity (HedgeCo)
Bank of America Merrill Lynch, in partnership with GCM Grosvenor and Sponsors for Educational Opportunity (SEO), recently collaborated with investors representing over $300 billion in assets to host a Hedge Fund Forum on Diversity. The Forum, held last month in New York City, was led by Keith Glenfield, Head of Alternative Investments for Bank of America Merrill Lynch, and Michael Sacks, Chairman and CEO of GCM Grosvenor. The event, created to reinforce the importance of diversity in the industry, was attended by founders and senior executives from more than 40 hedge fund firms.
T. Boone Pickens writes Rickie Fowler a ‘thank you’ letter after British Open (NewsOk)
Oklahoma State billionaire booster T. Boone Pickens took time out to write former OSU golfer Rickie Fowler a handwritten letter for some kind words the British Open runner-up said on TV. Fowler called Pickens his “good friend” in a recent CNBC interview, and Pickens responded with this letter, saying he was following Fowler’s chase of the Claret Jug last weekend. Fowler finished in a tie with Sergio Garcia for second place, two shots behind winner Rory McIlroy.
Will Gold Prices Fall Even Further? (Fool)
Marc Faber, publisher of The Gloom, Boom & Doom Report, told Bloomberg on July 21 that investors should be buying gold and gold miners to take advantage of the rally he expects in the price of the precious metal. Faber recommends that investors protect the value of their assets by taking positions in gold and gold stocks to hedge against the negative impacts of worsening geopolitical situations and unrestricted money printing. The idea is that global investors will soon flock to gold again to protect against currency devaluation, inflation, and the unknown fallout of major global conflicts.
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