Wednesday, January 28, 2015

Discounted Admission to February's Single Family Office Summit in NYC

By: Richard Wilson


Next month, family offices will gather in Manhattan for the Annual Single Family Office Summit on February 9th.  Market Folly has secured 5 special discounted tickets to attend the full-day catered conference for only $797.  To claim one of these discounted seats, simply enter the discount code "SFO" on the order form here:

The Single Family Office Summit is held at the Marriott East Side on February 9th and features more than a dozen single family offices speaking on the most important topics of wealth management, allocation decisions, and institutional investing.  If you want to look through the brochure you can do so here:

Who will be attending?

This event attracts institutional investors, family office executives, private equity dealmakers, investment fund managers, high-net-worth individuals, and a variety of family office industry advisors.  The conference combines live networking with a variety of insightful panels and presentations on issues facing single family offices and family advisors.

Why should you attend?

The Single Family Office Summit is your annual opportunity to meet face-to-face with family offices, network with peers that are working in the family office industry, gain valuable insights on the market and allocation strategies, and build real relationships that move the needle in your business or family office.  The single most common feedback from attendees is "I should have brought more business cards" because the Single Family Office Summit places an emphasis on actually meeting your fellow attendees and speakers.

Ready to Register?

Market Folly has just 5 special $797 discounted tickets to be sure to claim your seat today with the discount code "SFO" to take advantage of this offer: or you can call (212) 729-5067 to complete your reservation over the phone.


Richard C. Wilson
CEO & Founder
The Family Office Club:
Live Conferences:

Tuesday, January 27, 2015

Farallon Capital Discloses KLX Position (Spin-Off From B/E Aerospace)

Andrew Spokes' hedge fund firm Farallon Capital has filed a 13G with the SEC regarding shares of KLX Inc (KLXI).  Per the filing, Farallon now owns 7% of the company with 3,675,000 shares.

This is a newly disclosed equity position for the firm and the filing was made due to activity on January 16th.  KLX was recently spun-off from B/E Aerospace (BEAV) and BEAV shareholders received 1 KLXI share for every 2 BEAV shares held.

Given that Farallon didn't own BEAV as of the end of the third quarter, they either bought BEAV in the fourth quarter and then received KLXI shares in the spin-off, or they just purchased KLXI straight up once it was separated.

Per Google Finance, KLX is "the distributor and service provider of aerospace fasteners and consumables. The Company offers ranges of aerospace hardware and consumables, and inventory management services across the world. The Company operates in two segments: Aerospace Solutions Group (ASG) segment and Energy Services Group (ESG) segment. Its customers include oil and gas companies that are engaged in the exploration, and production and development of oil and gas properties. The Company through its network and information technology systems offer services to commercial airliners, business jet and defense original equipment manufacturer (OEMs) and its subcontractors, airlines, and maintenance, repair and overhaul (MRO) operators. The Company provides access to over one million stock keeping unit (SKUs). Its systems support both internal distribution processes, along with customer services, including just-in-time deliveries and kitting solutions."

JANA Partners Trims PetSmart Stake Again

Barry Rosenstein's activist hedge fund JANA Partners has filed another amended 13D with the SEC regarding their position in PetSmart (PETM).  Per the filing, JANA now owns 5.1% of the company with over 5.05 million shares.

This is the second time they've cut their position size in January.  After dropping their stake from 9.69 million shares down to 7.6 million, they've now reduced it further to 5.05 million.  The filing was made due to activity on January 22nd.

PetSmart is set to be acquired by BC Partners in an $8.7 billion deal, so perhaps JANA is reducing exposure to what has become an arbitrage play in order to free up capital to deploy into other opportunities. 

We've also posted up other portfolio activity from JANA this month as well.

Oaktree Capital Files 13G on Century Communities

Howard Marks' distressed focused firm Oaktree Capital has filed a 13G with the SEC on shares of Century Communities (CCS).  Per the filing, Oaktree now owns 5.9% of the company with 1,278,091 shares.

This is a newly revealed equity stake and the filing was made due to activity on January 16th. 

For more from this hedge fund's founder, be sure to check out Howard Marks' latest letter.

Per Yahoo Finance, Century Communities is "engaged in homebuilding activities primarily in metropolitan markets in Colorado."

Peltz's Trian Fund Trims Family Dollar Stake

Nelson Peltz's activist investment firm Trian Fund Management has filed an amended 13D with the SEC regarding their position in Family Dollar (FDO).  Per the filing, Trian now owns 2.07% of the company with over 2.36 million shares.

This means they've reduced their position size by over 6 million shares since the end of the third quarter.  The filing was made due to activity on January 26th. 

FDO recently agreed to a deal with Dollar Tree (DLTR) and Trian has already reduced its investment.

Monday, January 26, 2015

Lee Cooperman Starts 2 New Stakes, Adds To 4 Positions, Trims Another

Omega Advisors' Lee Cooperman filed a myriad of amended 13G's with the SEC recently.  Here's the breakdown:

Starts 2 New Positions: Aspen Group & Arbor Realty Trust

The hedge fund manager has revealed newly bought stakes in two companies: Aspen Group (ASPU), an online education company, and Arbor Realty Trust (ABR), a specialized real estate finance company.  Both positions were disclosed due to activity on December 31st, 2014.

Cooperman now owns 7.11% of Aspen Group with 8 million shares and owns 7.53% of Arbor Realty Trust with over 3.77 million shares.

Adds to Altisource Portfolio Solutions, Calls Out Management

Also, Cooperman has filed a 13G, Form 3, and multiple Form 4's with the SEC regarding Altisource Portfolio Solutions (ASPS).  He disclosed an ownership stake of 11.14% of the company with over 2.25 million shares as of December 31st, 2014.  This means he's increased his position by almost a million shares since the end of the third quarter.

The Form 4 indicates that Cooperman bought ASPS shares at weighted average prices of $47.47 and $39.42 on December 19th and 22nd, respectively.

Shares of ASPS currently trade around $22 after the company has been hit with regulatory scrutiny as the New York Department of Financial Services (DFS) came down hard on ASPS's biggest customer, Ocwen Financial (OCN), and in turn ASPS as well.  Both companies were part of Bill Erbey's empire and as part of the settlement with the DFS, Erbey will step down from his posts at both companies.

Cooperman also recently appeared on a company conference call and lashed out at management for poor capital allocation decisions, asking "what I'm trying to figure out to be honest with you ... whether your testicles are bigger than your brains or your brains are bigger than your testicles."

The company bought back a ton of stock at much higher prices (around $104 per share) during the period of regulatory scrutiny, only to see their shares plummet much further down to current levels of around $22. 

Numerous hedge funds have been involved in ASPS and OCN shares and it will be interesting to see who held on through the carnage, who exited, and who might have picked up shares as a distressed play at the end of 2014.  Unfortunately, it will be another 3 weeks until those disclosures (Q4 13F filings) are submitted to the SEC.

At the end of the third quarter, the largest holders of ASPS were Luxor Capital, Omega Advisors, White Elm Capital, among others.  Top OCN holders included Pennant Capital, Highfields Capital, Baupost Group, Kingstown Capital, Own Creek Asset Management, White Elm Capital, among others.  Since the end of the third quarter, OCN is down 72% and ASPS is down 78%.

Adds to Atlas Energy & Atlas Pipeline Stakes

Next, the Omega Advisors founder has been out buying shares of Atlas Energy (ATLS).  Per the 13G filing, Cooperman now owns over 7 million shares (an increase of over 2.9 million shares since the end of the third quarter).

Additionally, he has also increased his exposure to Atlas Pipeline Partners (APL) and now owns over 7.45 million shares (compared to the 3.34 million he owned at the end of the third quarter).

Increases Gulf Coast Ultra Deep Royalty Trust Exposure

Next, Cooperman has disclosed an increased position in Gulf Coast Ultra Deep Royalty Trust Units (GULTU).  He previously owned 16.9 million shares but now owns 22.22 million, an increase of over 5.3 million shares since the end of the third quarter.

Slightly Trims Chimera Investment Corp Stake

Lastly, Cooperman disclosed in another 13G that he has ever-so-slightly reduced his stake in Chimera Investment Corp (CIM) by a minor 168,645 shares.  He still retained a position of over 64.3 million shares at the end of 2014.

For more of Cooperman's recent portfolio activity, head here.

Bridger Capital Starts Arrowhead Research Stake

Roberto Mignone's hedge fund firm Bridger Capital has filed a 13G with the SEC regarding shares of Arrowhead Research (ARWR).  Per the filing, Bridger now owns 5.5% of the company with over 2.98 million shares.

This is a newly disclosed equity position for the hedge fund and the SEC filing was made due to activity on January 13th.

Per Google Finance, Arrowhead Research is "a biopharmaceutical company developing targeted RNAi therapeutics. The Company is leveraging its drug delivery technologies to develop drugs based on the RNA interference mechanism that silences disease-causing genes. Arrowhead technologies also enable partners to create peptide-drug conjugates that specifically home to cell types of interest while sparing off-target tissues. Arrowhead’s pipeline includes clinical programs in chronic hepatitis B virus and partner-based programs in obesity and oncology. ARC-520 is an RNAi-based therapeutic designed to treat chronic hepatitis B virus (HBV) infection. Arrowhead’s anti-obesity drug candidate, Adipotide, selectively destroys the blood supply that supports the growth of unhealthy fat by the targeted induction of apoptosis (cell death) in the vasculature of adipose tissue. In April 2012, the Company acquired Alvos Therapeutics, Inc."

Richard Gerson's Falcon Edge Capital Discloses Tekmira Pharma Stake

Richard Gerson's hedge fund firm Falcon Edge Capital has filed a 13G with the SEC regarding shares of Tekmira Pharma (TKMR).  Per the filing, Falcon Edge now owns 9.9% of the company with over 2.22 million shares.

This is a newly disclosed equity position for the hedge fund and the filing was due to activity on January 12th.  Tekmira recently bought OnCore Biopharma, creating a company focused on creating Hepatitis B treatments.

Prior to founding Falcon Edge, Gerson worked with John Griffin at Blue Ridge Capital, a fund the site has tracked for many years.

Per Google Finance, Tekmira Pharma is "a biopharmaceutical company focused on advancing ribonucleic acid (RNA) interference (RNAi) therapeutics and providing its lipid nanoparticle (LNP) delivery technology to pharmaceutical and biotechnology partners. Its product candidates include TKM-HBV, TKM-PLK1, TKM-Ebola and TKM-Marburg. TKM-HBV is an RNAi therapeutic for the treatment of Hepatitis B infection. The Company’s lead oncology product candidate, TKM -PLK1 is an oncology product platform that targets polo-like kinase 1 (PLK1), a protein involved in tumor cell proliferation and a validated oncology target. TKM-ALDH2 is an application of RNAi for alcohol use disorder with a target patient population who have moderate to severe alcohol use disorder. TKM-Ebola is an anti-Ebola viral therapeutic being developed under a contract with the United States Department of Defense Joint Project Manager Medical Countermeasure Systems. TKM-Marburg is used to treat hemorrhagic fever viral infections.."