Thursday, September 4, 2014

David Tepper: Beginning of the End of the Bond Market Bubble

Bloomberg today featured an interesting comment from Appaloosa Management's David Tepper.  The hedge fund manager basically said that the ECB decision means the "beginning of the end" of the bond market bubble.

And while he didn't specifically reveal his positioning, host Stephanie Ruhle says that Tepper expressed that's he's pretty adamant about his statement and so it's pretty easy to guess his positioning based upon that (short bonds).

Embedded below is the video of Tepper's full quote via Bloomberg:

Howard Marks' New Memo: Risk Revisited

Oaktree Capital's Chairman Howard Marks is out with his latest memo entitled 'Risk Revisited.'  Warren Buffett has said he always looks forward to reading Marks' memos and if that's not enough of an endorsement, we don't know what is.

In his latest piece, Marks draws attention to a few key points he wants to make:

1.  "The future should be viewed not as a fixed outcome that's destined to happen and capable of being predicted, but as a range of possibilities and, hopefully on the basis of insight into their respective likelihoods, as a probability of distributions."

2. "Risk means more things can happen than will happen."

3.  "Knowing the probabilities doesn't mean you know what's going to happen."

4.  "Even though many things can happen, only one will."

His memo then goes on to outline all the various types of risks and we recommend you read it in its entirety as it is quite thorough.

He ends his latest missive by noting that investing can be like playing offense and defense and that today he's paying more attention to loss prevention than the pursuit of gain.

Embedded below is Howard Marks' latest memo, 'Risk Revisited':

You can download a .pdf here.

For more investing wisdom from this manager, be sure to check out Marks' book, The Most Important Thing: Uncommon Sense for the Thoughtful Investor.

JAT Capital Increases Madison Square Garden Stake

In an amended 13D filed with the SEC, John Thaler's hedge fund firm JAT Capital has revealed they now own 7.75% of Madison Square Garden (MSG) with over 4.93 million shares.

This is up from their previous stake of 4.28 million shares when we previously highlighted JAT's activist MSG stake.  The filing was due to activity on August 29th and they used proceeds from outstanding swaps to purchase 3.45 million shares and call options to purchase 1.47 million shares.

Per Google Finance, Madison Square Garden is "a holding company conducting its operations through direct and indirect subsidiaries. The Company is an integrated sports, entertainment and media business company. The Company operates in three segments: MSG Sports, MSG Media and MSG Entertainment. In March 2014, the Company purchased a 50% interest in Tribeca Enterprises.."

Eminence Capital Boosts Zynga Position

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding their position in Zynga (ZNGA).  Per the filing, Eminence now owns 5.1% of the company with over 38 million shares.

This means they've boosted their share count by over 11.5 million since the end of the second quarter.  The filing was required due to activity on August 21st.

In other activity from this fund, we recently highlighted how Eminence started a World Wrestling Entertainment stake as well.

Per Google Finance, Zynga is "the provider of social game services. The Company develops , market and operates online social games as live services played over the Internet and on social networking sites and mobile platforms. The Company's games are accessible on Facebook and other social networks, mobile platforms and"