Friday, June 28, 2013

Google Reader Users: Last Chance To Find A New Way To Receive Market Folly's Posts; Instructions Below

After this weekend, Google Reader will no longer exist.  If you've been receiving Market Folly's free updates via RSS feed and use Google Reader, you need to find a replacement ASAP otherwise you'll miss our posts going forward!

How To Continue Receiving Market Folly's Free Updates

Option #1:  Sign up for our free emails.  All of our posts from the day are aggregated into 1 email and sent out in the afternoon for free. 

Click here to receive our free email updates.  Make sure you click the activation link you receive in your inbox to confirm, otherwise you won't receive our posts!

Option #2: Pick a new RSS reader to replace Google Reader 

Step 1: Here are some good options:

The Old Reader - very similar look and feel to Google Reader

Feedly - a popular new choice, but features a different layout

NewsBlur - web-based option

Netvibes - another web-based choice

Step 2:   After you've chosen a new RSS reader, make sure you click here to add Market Folly's feed to your RSS reader for free.

*** Sign up for our email updates or find a Google Reader replacement before this weekend, because if you don't you'll miss our future posts! ***

Market Folly now has over 17,800 subscribers with readers from practically every major hedge fund, investment bank, and tons of other money managers.  Thanks for reading!  Questions?  Don't hesitate to reach out: marketfolly (at) gmail (dot) com

Corvex Management Exercises Call Options on TW Telecom

Keith Meister's hedge fund firm Corvex Management has filed an amended 13D with the SEC on shares of TW Telecom (TWTC).  Per the filing, Corvex has revealed a 6.03% ownership stake in TWTC with 9,069,224 shares.

Corvex's filing indicates they've exercised all call options that we originally outlined when the hedge fund first filed a 13D on TWTC back in May. This latest filing was due to exercise of options on June 27th.  All of their put options expired/terminated as well.  You can view their options activity at the very bottom of this link.

We previously posted Keith Meister's presentation on TWTC from the Ira Sohn Conference where he outlined that it could be a possible takeover target, is a market share gainer, and has balance sheet optionality. 

Per Google Finance, TWTC is "a national provider of managed network services, specializing in business Ethernet, data networking, Converged, Internet protocol-based virtual private network (IP VPN), Internet access, voice, including voice over Internet Protocol (VoIP), and network security services to enterprise organizations, including public sector entities, and carriers throughout the United States, including their global locations."

What We're Reading ~ Hedge Fund Links 6/28/13

Glenview Capital explains grand gains [Hedge Fund Intelligence]

The 2013 hedge fund rising stars [Institutional Investor]

Kyle Bass: Next 18 months will redefine economic orthodoxy for the west [ZeroHedge]

Dalio's Bridgewater seen as a loser in market sell-off [Reuters]

For Third Point manager, it's not easy being short [CNBC]

John Paulson cashes in on CNO Financial bet [Indianapolis Business Journal]

DoubleLine's Jeff Gundlach bought agency MBS in recent days [WSJ]

Hedge fund managed accounts get serious attention [P&I]

A new crop of faces for the hedge fund hall of fame [II Alpha]

Another recent interview with Whitney Tilson [Motley Fool]

David Einhorn playing in the one drop poker tournament [Pokernews]

Marcato Capital Management Trims CyrusOne (CONE) Position

Mick McGuire's hedge fund Marcato Capital Management has filed a Form 4 with the SEC regarding shares of CyrusOne (CONE).

Per the filing, Marcato has sold 383,000 shares on June 26th at prices ranging between $18.95 and $19.10.  After the sales, the hedge fund still retains a position of just over 2.2 million CONE shares.

We previously posted about Marcato's CONE stake in April.

McGuire originally pitched CyrusOne as an idea as part of Cincinnati Bell (CBB).  CONE was spun-off from the company via an IPO.  He pitched CBB/CONE at the Great Investors' Best Ideas investment symposium in Dallas late last year. 

Per Google Finance, CyrusOne is "a owner, operator and developer of enterprise-class, carrier-neutral data center properties. The Company provides mission-critical data center facilities that protect operation of information technology (IT) infrastructure for approximately 500 customers. As of September 30, 2012, the Company’s property portfolio included 23 operating data centers in nine markets: Austin; Chicago; Cincinnati; Dallas; Houston; London; San Antonio; Singapore, and South Bend providing approximately 1,630,000 net rentable square feet (NRSF) and powered by approximately 125 megawatts of utility power."

To hear McGuire's latest investing ideas, register for the Value Investing Congress where he'll be speaking in September, along with other prominent hedge fund managers.  Market Folly readers receive a discount to the event here.

Wednesday, June 26, 2013

What We're Reading ~ Analytical Links 6/26/13

10 risks we face right now [TheStreet]

On the Sharpe ratio [Research Puzzle]

Value badly lagging glamour: value premium is now a discount [Greenbackd]

Taking a deeper look at Rosetta Stone (RST) [Investing 501]

On the Fed and interest rates [Aswath Damodaran]

Interview with Liberty Media's (LMCA) John Malone [Denver Business Journal]

If cable is dying, why is it still making so much money? [TheAtlantic]

Nook sales tumble 34%, Barnes & Noble rethinks strategy [CNN Money]

Owens Illinois (OI): Glass bottles lend pop to soda makers [WSJ]

Barron's midyear 2013 roundtable [Barrons]

Why boring stocks beat exciting ones [WSJ]

On the IRS' study of REITs [FT]

Government Accountability Office says airline merger reduces competition (duh) [NYTimes]

On art as an investment [NPR]

Inside story of fraud at Ranbaxy, Indian drug company [Fortune]

Tuesday, June 25, 2013

Larry Robbins Rare Interview on HMA, Tenet & What He Thinks About This Market

Larry Robbins' hedge fund Glenview Capital is having another big year.  This is on the heels of stellar 2012 performance as well.  Robbins made a rare media appearance on CNBC to talk about how he's looking to replace 8 board members at Health Management Associates (HMA).

Robbins on HMA

Given that Robbins has essentially gone activist here (he calls it "suggestivist"), it should come as no surprise that he's made such an appearance to drum up shareholder support for his plan.  After all, Glenview owns around 14% of the company.

While Robbins acknowledges that consolidation is a potential outcome for HMA, he notes that the company needs to line-up a better management team and become an excellent standalone company regardless.  He says,

"The companies that did well not only for our long-term portfolio, but for the long-term portfolio of all their owners, are the companies that not only took advantage of that consolidation transaction but drove their company forward with strong operations and strong use of cash flow in an opportunistic format.  The hospitals are no different, yes there were 7 large public hospital chains with yesterday's news that Tenet will buy Vanguard there are now 6, and there are absolutely key benefits not only strategic, but financial to consolidation between one or more large hospital operators.  We are absolutely open minded that that is one way to drive value, but that is not exclusive of the other way to drive value which is a very strong management team and a very strong path to independence, regardless if we (as HMA) become a division of a larger company or whether HMA goes forth on its own right."

Robbins on THC & the Stock Market Overall

In the interview, Robbins also touched on one of his other large hospital plays, Tenet Healthcare (THC).  He likes their deal for Vanguard and notes the company has made prudent decisions.

THC has been a big winner for Glenview over the past year but we highlighted how Glenview's trimmed their THC position recently.

The hedge fund manager also addressed his view on the market overall: "We are not taking risk-off, we believe this is still a very above average opportunity set for long-term investors and frankly as an industry, we all need to remind ourselves to think and act like owners."

Embedded below is the video of Robbins' CNBC appearance:

For more on this hedge fund, be sure to check out Glenview's presentation on HMA that was released today.

Glenview Capital's Presentation Revitalize HMA - The Case For Change

Earlier today we posted up a rare interview with Glenview Capital's Larry Robbins.  Today his hedge fund released a letter to HMA shareholders as well as a presentation entitled "Revitalize HMA - The Case For Change" as he attempts to replace 8 board members at Health Management Associates (HMA).

Glenview's Letter To HMA Shareholders

Embedded below:

Glenview's Presentation: Revitalize HMA

Embedded below:

Be sure to also watch Robbins' interview as he rarely appears in the media.

Scout Capital's Letter to Tim Hortons' Board

Adam Weiss and James Crichton's hedge fund Scout Capital today filed an amended 13D with the SEC regarding Tim Hortons (THI).  Per the filing, their position size in THI remains unchanged (we originally flagged Scout's activist position in THI here).

Scout has sent a letter to the board of directors outlining their issues with the company and we've embedded it below:

For more on this hedge fund, check out some of Scout's other portfolio activity here.

Mick McGuire's Hedge Fund Trims DineEquity Stake

Mick McGuire's hedge fund firm Marcato Capital Management just filed an amended 13D with the SEC regarding its position in DineEquity (DIN).  Per the filing, Marcato has revealed a 0.3% ownership stake in DIN with 66,916 shares.

This marks a decrease of 38% in their common stock position size as they've sold over 40,000 shares since the end of the first quarter.  As of June 22nd, Marcato ceased to be the beneficial owner of more than 5% of shares, which triggered the filing.  The hedge fund also had numerous stock option transactions which you can view here.

Mick McGuire is an activist investor and will be presenting his latest investment ideas at the upcoming Value Investing Congress.  Our readers can receive a discount to the event by clicking here and using discount code: N13MF2  

But hurry because this offer expires in two days!

Per Google Finance, DineEquity "owns, operates and franchises two restaurant concepts in the casual dining and family dining categories of the restaurant industry: Applebee's Neighborhood Grill and Bar and International House of Pancakes (IHOP). The Company operates in four segments: franchise operations, company restaurant operations, rental operations and financing operations."