On decision regret [A Wealth of Common Sense]
Why competitive advantages die [Collaborative Fund]
Notes from the Wharton restructuring & distressed conference [Reddit]
The case against Google [NYTimes]
Consumer goods: big brands battle with the little guys [FT]
The end of the low volatility regime [13D]
Myths and facts about "risk parity" [FT Alphaville]
Inside Facebook's two years of hell [Wired]
How Softbank, world's biggest tech investor, throws around its cash [WSJ]
Canada's housing market flirts with disaster [FT]
Everything you need to know about 5G [IEEE Spectrum]
Inside T-Mobile's big, brash comeback [Fortune]
Boeing is killing it by squeezing its suppliers [Bloomberg]
From imitation to innovation: how China became a tech superpower [Wired]
Chinese tourists are taking over the earth [Bloomberg]
There's a global race to control batteries - and China is winning [WSJ]
Didi Chuxing took on Uber and won, now it's taking on the world [Wired]
Autonomous cars: no one wants to let Google win the war for maps all over again [Bloomberg]
Dyson bets on electric cars to shakeup industry [FT]
How to succeed in business? Do less [WSJ]
Wednesday, February 28, 2018
What We're Reading ~ 2/28/18
Pershing Square Building United Technologies Stake; Covers Herbalife Short
Per CNBC, Bill Ackman's Pershing Square has reportedly been building a stake in United Technologies (UTX). Ackman told Scott Wapner that he thought the company was "great." The company has been awaiting the closure of its acquisition of Rockwell Collins (COL). Additionally, UTX management has said they've been evaluating splitting up into a few different entities.
Secondly, Ackman has exited his bet against Herbalife (HLF). He had previously been outright short shares, but then this past November restructured the short via put options. Now, he's out of his short bet entirely.
This comes after he said back in 2013 that he'd go to the "ends of the earth" to shut the company down, dubbing it a pyramid scheme. Shares of HLF are already up 36% year-to-date after being up a similar amount already last year.
Pershing Square has been active lately, as it also recently revealed a new Nike (NKE) position.
For more from this investor, you can view a recent Pershing Square presentation here.
Tiger Global Selling eHi Car Service Stake
Chase Coleman's hedge fund firm Tiger Global has filed a 13D with the SEC regarding its stake in eHi Car Services (EHIC). Per the filing, Tiger Global is selling 5.26 million ADR shares representing 10.52 million class A shares.
The SEC filing specifies the details:
"On February 23, 2018, Global Mauritius, a Reporting Person, entered into a Securities Purchase Agreement (the "Purchase Agreement") with BPEA Teamsport Limited (the "Purchaser") for the sale of 5,264,080 ADSs, representing 10,528,160 Class A Shares, to the Purchaser. The closing of the transaction contemplated by the Purchase Agreement is scheduled to occur on or prior to May 30, 2018. The initial purchase price is US$12.00 per ADS, subject to adjustment as provided in the Purchase Agreement. The Purchaser is participating in that certain consortium including Mr. Ray RuiPing Zhang, the Chairman and Chief Executive Officer of the Issuer, and other potential investors, in connection with the proposed acquisition of the Issuer in a "going-private" transaction for US$13.35 in cash per ADS, as disclosed in Exhibit 99.1 to the Issuer's Form 6-K furnished with the United States Securities and Exchange Commission on January 2, 2018."
The entire securities purchase agreement is found here.
Per Google Finance, Ehi Car Services "is engaged in car rentals and car services. The Company provides self-drive car rental services to both individual customers, as well as corporate and institutional clients to meet travel, leisure, business and ground transportation needs. The Company operates its car rentals business primarily through its subsidiaries, including Shanghai eHi Car Rental Co., Ltd. (eHi Rental), eHi Auto Services (Jiangsu) Co., Ltd. (eHi Jiangsu), and their subsidiaries and branches. For its car services business, the Company provides vehicles and chauffeur services through different subsidiaries. The Company provides chauffeur services through its subsidiary, Shanghai Smart Brand Auto Driving Services Co., Ltd. (Shanghai Smart Brand), and its subsidiaries and branches. The Company has a limited operating history."
