Thursday, August 22, 2013

What We're Reading ~ Analytical Links 8/22/13

Rising markets batter short sellers [WSJ]

What has QE actually accomplished? [Mauldin Economics]

Cash is a drug for investors, redux [Abnormal Returns]

The best value investing quotes [Old School Value]

ESPN holds talks for web-based TV [Bloomberg]

Chinese search for infant formula goes global [NYTimes]

Barnes & Noble (BKS) reverses strategy in train wreck of a call [GigaOm]

8 pivotal acquisitions made by Google (GOOG) [Hongkiat]

In-depth reports on for-profit educators []

Is the new Gmail killing email marketing? [BusinessWeek]

Life after Siri: Nuance's (NUAN) climb to being your digital assistant [Forbes]

On gold losing its shine [Telegraph]

Overseas investors spend $50 billion on Florida real estate [BizJournals]

JPMorgan's latest guide to markets [JPMorgan]

Newly revealed 1975 letter from Warren Buffett [Fortune]

Phone companies are winning new TV watchers, cable & satellite not so much [GigaOm]

Lansdowne Starts Tower Resources Position

Paul Ruddock's hedge fund firm Lansdowne Partners has disclosed a new position in London listed Tower Resources (LON: TRP).  According to a disclosure made on August 2nd, Lansdowne hold the equivalent of 10.56% of Tower Resources voting rights.  We say ‘equivalent’ because the position is held completely via Contracts for Difference (CFDs) and these derivatives don’t actually confer the right to vote. 

It is uncharacteristic for Lansdowne to hold a large percentage of a company’s stock via CFDs.  They surely have a reason for doing so, but it is difficult to know why they have chosen this route in this particular case. 

Per Google finance – “Tower Resources Plc is an independent oil and gas exploration company. The   Company has targeted exploration licenses, focused on Africa. The Company holds a 30% working   interest in a license which consists of three blocks offshore Namibia through its operating subsidiary,   Neptune Petroleum (Namibia) Ltd., and a 50% interest in three contiguous licenses, onshore and   offshore, in the Sahawari Democratic Republic through its subsidiary Comet Petroleum Ltd. The  Company's primary focus is its 30% working interest in the 0010 License offshore Namibia. “

Cevian Capital Discloses G4S Stake

Anglo Swedish activist hedge fund, Cevian Capital, has disclosed a new stake in London listed G4S (LON:GFS).  According to the filing on August 12th, Cevian, own 5.11% of G4S's voting rights. 

G4S, one of the world's largest security firms, has been struggling since it failed to fulfill its staffing obligations at the London Olympics in 2012.  G4S lost its CEO in the storm that followed and is now facing an additional investigation into alleged over-billing of the government for the tagging of offenders.

Cevian joins some other notable names on the long side of G4S including: Invesco's Neil Woodford, Bill and Melinda Gates' Foundation / Cascade and Tweedy Brown.

Many Hedge Funds Short G4S As Well

However, G4S seems to have attracted a lot of hedge funds on the short side as well.  AKO Capital have a 0.54% short, Adelphi Capital -0.71%, BlackRock -0.59%, Egerton Capital -0.7%, Lansdowne partners -0.66%, and Odey Asset Management -0.66%.

About Cevian Capital

Cevian was founded in 2002 by Christer Gardell and Lars Forberg.  Cevian has 6 billion euros under management and specializes in running concentrated, activist positions.

About G4S

Per Google Finance - “G4S Plc, along with its subsidiaries, is engaged in provision of secure  solutions, including manned security services, care and justice services and security systems, and   cash solutions, including the management and transportation of cash and valuables, as well as   undertaking of other outsourced business processes in sectors where security and safety risks are   considered a threat. The Company operates in two segments: secure solutions and cash solutions.   Secure solutions are the integrated security solutions for commercial organizations in areas such as   risk consulting, manned security and security systems and a range of services including protection   of critical national infrastructure, care and justice services, integrated facilities services and border   protection for governments. Cash solutions are the outsourcing of cash cycle management for   central banks, financial institutions and retailers.”

Wednesday, August 21, 2013

Premium Newsletter: Q2 Issue Released Today (Consensus Buy/Sell Section, Equity Analysis & More)

The brand new Q2 2013 issue of our premium newsletter, Hedge Fund Wisdom, is now available!  Subscribers please login at to access it.

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