Friday, January 10, 2014

What We're Reading ~ Hedge Fund Links 1/10/14

It's always relative.. that is, in performance [All About Alpha]

The obsession of John Paulson [AI-CIO]

Hedge funds cut 2 & 20 pricing [Fool]

Ackman issues status update on Herbalife [ZeroHedge]

Loeb takes position in Hertz, sources say [CNBC]

Jeff Ubben warns on let-down of activist investment boom [FT]

Update on Julian Robertson's new seeding platform [Dealbook]

On hedge fund proteges [Research Puzzle]

Third Point alum Bow Street bullish on media & telecom [ValueWalk]

Rare videos of Steve Cohen asked about securities laws [PBS]

Agecroft Partners' top 10 hedge fund industry predictions [FINalternatives]

Abenomics drives Japan hedge funds to world's top performers [Bloomberg]

China proves better bet than Japan for Asia hedge fund investors [HedgeWorld]

After scandal, SAC alums raising piles of cash [CNBC]

Harbinger knocks Dish's bid for Lightsquared's spectrum [HedgeWorld]

Wednesday, January 8, 2014

What We're Reading ~ Analytical Links 1/8/14

Investors/entrepreneurs predict trends, stocks & private companies to watch in 2014 [Forbes]

Compilation of what a lot of people learned in 2013 [Reformed Broker]

Individual investor stock allocation hits post-crisis high [Pragmatic Capitalism]

The world economy's shifting challenges [George Soros]

The best financial advice I ever got (or gave) [WSJ]

The 2014 buy list from [Crossing Wall Street]

Winners of 2013: boring investors [WSJ]

Why the P/E ratio doesn't always matter but cash flow is crucial [ValueWalk]

More 2014 predictions from market watchers [Yahoo Finance]

Liberty Media seeks full ownership of Sirius XM [Dealbook]

Billionaire Malone returns to empire building amid cord cutting [Bloomberg]

Hertz eyes sale of equipment rental unit [FT]

Venture Capitalists predict where they'll invest in 2014 [Forbes]

The art of misdirection [TED]

The 'internet of things' could be the next industrial revolution [DenverPost]

Ruffer Q4 Letter: Bulls Vs. Bears

Jonathan Ruffer is out with his Ruffer Investment Company fourth quarter letter.  In it, he highlights how there are currently two schools of thoughts when it comes to approaching the current markets:

"Those who are bearish, looking only at the fundamentals are forced to wait it out in the rising water, and it will be a matter of whether they can hold their nose and/or their nerve for long enough while the indices grind higher. Those who are bullish, whether through sunny optimism or a canny judgement of the situation, watch the Federal Reserve for some indication as to when they plan to pull away the punchbowl."

So, who flinches first?

Embedded below is Ruffer's Q4 letter:

For more from Ruffer, head to his Q3 letter on how he still anticipates eventual inflation.

Pershing Square Files 13D on Howard Hughes (HHC)

Bill Ackman's hedge fund Pershing Square Capital Management has filed an amended 13D with the SEC regarding their position in Howard Hughes (HHC).  Per the filing, Pershing has disclosed a 26.2% ownership stake in HHC via aggregate economic exposure of 10.88 million shares.

The main takeaway here is their swaps exposure to the name. They own 3.56 million common shares, Series A-2 warrants to purchase an additional 1.9 million shares, as well as 5.39 million shares of notional exposure via cash-settled total return swaps.  All of this exposure adds up to their 26.2% stake.

Per Google Finance, Howard Hughes is "a developer and operator of master planned communities and mixed use properties. The Company operates three segments: master planned communities, operating assets and strategic developments. The Company specializes in the development of master planned communities and ownership, management and the redevelopment or repositioning of real estate assets generating revenues, also called operating assets, as well as other strategic real estate opportunities in the form of entitled and unentitled land and other development rights, also called strategic developments."

For more on this hedge fund manager, head to Bill Ackman's latest presentation on Herbalife.