Wednesday, November 24, 2010

Hedge Fund Wisdom Q3 Issue Now Available!

MarketFolly is pleased to announce that the latest issue of our quarterly newsletter has just been released. The Q3 2010 edition of Hedge Fund Wisdom is 85 pages and includes the following:

- The latest portfolios of 23 prominent hedge funds (3 new funds added)

- Commentary/analysis of their moves: stocks they bought/sold and why

- Hedge Fund "Quick Pitches": Investment thesis summaries on 4 stocks

- Equity Analysis: In-depth research reports on 2 stocks hedge funds bought

To see the completely updated portfolios of top hedge funds, take advantage of our introductory pricing
! To pay by credit/debit card, click the 'subscribe' button and then on the next page look for the "Pay using your credit or debit card" link at the bottom. You can also pay via PayPal:

1-Year Subscription (Save 17% with this option)!: $199 per year

Quarterly Subscription: $60 per quarter

What We're Reading ~ 11/24/10

Interview with Meb Faber of World Beta [KirkReport]

It's survival of the smallest for fund of funds [AbsoluteReturn+Alpha]

How to live forever [James Altucher]

A piggyback strategy requires a disciplined approach [AbnormalReturns]

What is going on in the municipal markets? [DistressedDebtInvesting]

"Good enough" with Ken Fisher, Marty Whitman & Warren Buffett [AdvPerspectives]

On how to accumulate information [ResearchPuzzle]

How to read SEC filings on an Amazon Kindle [RationalWalk]

What OpenTable (OPEN) shorts don't talk about [ValueHuntr]

ValueAct Capital to raise $500m, then close to investors [FINalt]

An interview with trader & blogger Charles Kirk [AbnormalReturns]

Welcome to Omaha, Todd Combs [CNNMoney]

An op-ed by Warren Buffett [NYTimes]

Interesting article on Clarium Capital's Peter Thiel [NYPost]

Jim Chanos versus China [Fortune]

New SEC rules for hedge funds [Marketwatch]

Hedge fund forced Novell (NOVL) buyout [WSJ]

Four reasons to buy muni bonds [BusinessInsider]

Tuesday, November 23, 2010

Bill Ackman Files 13D on Howard Hughes Corp (HHC)

Bill Ackman's hedge fund Pershing Square Capital Management has recently filed an activist 13D on shares of Howard Hughes Corp (HHC). Per the filing (with activity on November 9th), Ackman has revealed a 13.8% ownership stake in HHC with 5,484,684 shares. This figure includes warrants exercisable for 1,916,667 shares. To see Pershing Square's entire updated portfolio, head to the brand new issue of our Hedge Fund Wisdom newsletter that was just released.

Pershing Square received shares of HHC due to their ownership of shares in General Growth Properties (GGP). Upon GGP's emergence from bankruptcy, GGP spun-off various assets in the form of a new company: Howard Hughes (HHC). GGP owners received 0.098344 shares of HHC per every 1 share of GGP owned on November 1st. Ackman also recently updated his ownership stake in GGP.

While Ackman has disclosed a 13.8% ownership in HHC via common stock, his economic exposure to the company is technically much higher at around 28% (including common stock, warrants, and cash settled total return swaps). These swaps give Pershing exposure to an additional 5,399,839 shares, bringing their aggregate economic exposure to 10,884,523 shares of HHC (or 27.5% of the outstanding shares).

Ackman's activist 13D on HHC also attached numerous other documents, including a standstill agreement which effectively caps Pershing's potential ownership stake at 40%. Ackman will also act as chairman of the board for the company.

Taken from Yahoo Finance, Howard Hughes is "a real estate investment and development company, engages in the development and management of retail, commercial, and industrial buildings in North America. Its facilities feature residential, entertainment, mixed use, recreation, culture, and resort components. The company also develops single-family homes, town homes, and condominiums, as well as involves in office buildings and land developments."

Be sure to check out the rest of Ackman's latest investments (and those of 22 other top investors) in our just released new issue of Hedge Fund Wisdom.

Glenview Capital Files 13G on Life Technologies (LIFE)

Larry Robbins' hedge fund Glenview Capital has filed a 13G with the SEC regarding shares of Life Technologies (LIFE). Due to portfolio activity on November 19th, Glenview has disclosed a 5.1% ownership stake LIFE in with 9,450,612 shares. This marks a 17% increase in Robbins' position size since September 30th, as his hedge fund owned 8,077,282 shares at the end of the third quarter.

Robbins is obviously fond of this name and recently pitched it at the Invest For Kids Conference in Chicago. You can see notes from his presentation here. In summary, he sees Life Technologies trading at an attractive valuation and thinks the company should buyback shares. In terms of other recent activity out of the hedge fund, we also detailed how Glenview increased its position in Punch Taverns.

Taken from Google Finance, Life Technologies (formerly Invitrogen Corporation), "incorporated 1989, is a biotechnology tools company. The Company delivers a range of products and services, including systems, instruments, reagents, software, and custom services. Its range of products includes technologies for capillary electrophoresis based sequencing, sequencing, patient care report (PCR), sample preparation, cell culture, ribonucleic acid (RNA) interference analysis, functional genomics research, proteomics and cell biology applications, as well as clinical diagnostic applications, forensics, animal, food, pharmaceutical and water testing analysis."