Friday, July 10, 2015

Baupost Group Discloses Biotie Therapies Stake

Seth Klarman's investment firm Baupost Group has filed a 13G with the SEC regarding shares of Biotie Therapies (BITI).  Per the filing, Baupost now owns 12.92% of the company with over 130.68 million shares.

This is a newly disclosed position for the firm as they did not show a stake at the end of the first quarter.  The filing was made due to activity on June 30th.

We've highlighted some other portfolio activity from Baupost Group here.

Per Google Finance, Biotie Therapies is "a Finland-based biopharmaceutical company, which specializes in the field of neurodegenerative and psychiatric disorders. Its product portfolio comprises six drugs: Selincro (nalmefene), an orally administered opioid receptor ligand applied in the alcohol dependence therapy; Tozadenant (SYN115), a is an oral, potent and selective adenosine 2a (A2a) receptor antagonist for the Parkinson’s disease treatment; NRL-1, a intranasal formulation of diazepam for patients with epilepsy; Nepicastat (SYN117), an orally administered, potent and selective inhibitor of dopamine beta hydroxylase (DBH) for the cocaine dependence treatment; BTT-1023, a monoclonal antibody targeting Vascular Adhesion Protein 1 (VAP-1) used in inflammation and fibrosis treatment; and SYN120, an oral, potent and dual antagonist of the 5-HT6 and 5HT2a receptors used in Alzheimer’s disease and other cognitive disorders, such as schizophrenia. It is a parent of Biotie Therapies GmbH, among others."

Soros Fund Boosts Cypress Semiconductor Position

George Soros' family office Soros Fund Management has filed a 13G with the SEC regarding shares of Cypress Semiconductor (CY).  Per the filing, Soros now owns 5.32% of the company with over 17.66 million shares.

This is an increase in their position size as they previously owned 13.2 million shares at the end of the first quarter.  The filing was made due to activity on June 29th.

We recently detailed other portfolio activity from Soros Fund here as well.

Per Google Finance, Cypress Semi is "a provider of mixed-signal programmable solutions. The Company's offerings include PSoC 1, PSoC 3, PSoC 4 and PSoC 5LP programmable system-on-chip families. It caters to markets, including industrial, mobile handsets, consumer, computation, data communications, automotive and military. The Company operates in four segments: Programmable Systems Division, Memory Products Division, Data Communications Division and Emerging Technologies Division. The Programmable Solutions Division designs and develops solutions for end-product manufacturers. The Memory Products Division designs and manufactures SRAM products and non-volatile RAMs (random access memories). The Data Communications Division focuses on solutions for industrial, handset and consumer applications. The Emerging Technologies Division consists of the Company's subsidiaries, AgigA Tech, Inc. and Deca Technologies, Inc."

Hedge Fund Links ~ 7/10/15

Tactical Portfolios: Strategies and Tactics for Investing in Hedge Funds [Bailey McCann]

A deep dive into the universe of women-run hedge funds [HVST]

A special report on Asia's hedge funds [Bloomberg Brief]

Hedgie shrewdly pulled assets from Greece ahead of crisis [NYPost]

Julian Robertson shrugs as world churns [Bloomberg]

Perspective on working in the hedge fund industry [ShortSighted Capital]

Best 100 hedge funds [Barrons]

Bravado and high returns from Italian fund manager [NYTimes]

Hedge fund bet hits pensions [WSJ]

Capitalize For Kids Investment Contest

Capitalize for Kids, in partnership with FactSet, has launched their investment challenge.  The winner of the contest receives a one-year complimentary subscription to the FactSet Workstation, access to GLG for further investment due diligence, and a ticket to the Sohn Canada Conference later this year.

For full details on prizes, judges, and the rules, head to

The deadline to submit your investment ideas is Midnight on August 21st, 2015.

The goal of this challenge is to identify a security that will return 20x in 20 years (16.2% compounded).  The ideas from the Capitalize For Kids Challenge will make meaningful contributions to children's brain and mental health by supporting high-quality ideas for the C4K Endowment.

Click here to learn more about the contest.

Embedded below is the flyer for the contest:


Wednesday, July 8, 2015

What We're Reading ~ 6/8/15

The Great Minds of Investing [William Green]

A moat of kisses and peanut butter cups ~ Hershey [Scuttlebutt Investor]

Why eBay looks enticing after the PayPal spinoff [MicroFundy]

Byron Wien's life lessons: formative experiences shape risk tolerance [Wall Street Week]

Byron Wien's chat with the 'smartest man in Europe' [Barrons]

US economy is still the promised land [Yardeni Research]

In defense of stock buybacks [Boston Globe]

A graphic of the top languages spoken across the globe [SCMP]

Billionaire Rales brothers ready for a new act in split of Danaher [Washington Post]

Male investors vs female investors [WSJ]

Viacom is having a midlife crisis [Bloomberg]

Activist investors love spin-offs, here's why you should too [Fortune]

Banks and exchanges turn to blockchain [FT]

Future returns on wealth will be lower [Economist]

The inside story of how iPhone crippled BlackBerry [WSJ]

Greenlight Capital Discloses CNX Coal Resources Stake

David Einhorn's hedge fund firm Greenlight Capital has filed a 13D with the SEC regarding shares of CNX Coal Resources (CNXC).  Per the filing, Einhorn now owns 47.3% of the company with over 5.48 million shares.

The company recently IPO'd and is a master limited partnership (MLP) formed by CONSOL Energy (CNX).  Einhorn's firm owns a sizable stake in the latter as well.

Greenlight bought CNXS shares in the private placement at $15 and also in the open market at $15.05.

We've highlighted other recent portfolio activity from Greenlight here.

Per Google Finance, CNX Coal Resources is "a producer of thermal coal. The Company is formed by CONSOL Energy Inc. (CONSOL Energy) to manage and develop all of its thermal coal operations in Pennsylvania. Its initial assets include around 20% undivided interest in and operational control over, CONSOL Energy's Pennsylvania mining complex, which consists of around three underground mines and related infrastructure that produce bituminous thermal coal that is sold primarily to electric utilities in the eastern United States. Its Pennsylvania mining complex, which includes the Bailey mine, the Enlow Fork mine and the Harvey mine, has coal reserves. The Company mines its reserves from the Pittsburgh No. 8 Coal Seam, which is a contiguous formation of uniform, thermal coal. The Pennsylvania mining complex includes around 785.6 million tons of coal reserves with an average gross heat content of approximately 13,000 British thermal units per pound and an average sulfur content of around 2.38%."

Showtime's Hedge Fund Show 'Billions' Video Trailer

Showtime is releasing a new show entitled 'Billions' next year.  The show's description is as follows:

"BILLIONS is a bold, contemporary drama that melds the worlds of ultra-wealth, influence and corruption as personified in two highly ambitious opposing figures: hard-charging, blue-blooded, politically connected U.S. Attorney Chuck Rhoades (Emmy and Golden Globe winner Paul Giamatti) and brilliant, calculating, blue-collar billionaire hedge fund king, Bobby "Axe" Axelrod (Emmy and Golden Globe winner Damian Lewis). Set amongst the Machiavellian machinations of New York City power politics and finance, BILLIONS weaves a complex, intricate narrative featuring a high-stakes game of predator-versus-prey."

The series is written by Brian Koppelman, David Levien, and Andrew Ross Sorkin.

Embedded below is the video preview of the Showtime's upcoming show Billions:

Monday, July 6, 2015

SRS Investment Management Discloses eHi Car Services Stake

Karthik Sarma's hedge fund firm SRS Investment Management has filed a 13G on shares of eHi Car Services (EHIC).  Per the filing, SRS now owns 15.3% of the company with over 8.33 million shares (inclusive of 333,334 class A shares held via 166,667 ADSs).

This is a newly disclosed position as it didn't show up in their last 13F as of the end of Q1.  The filing was made due to activity on June 30th.  As of the end of Q1, SRS had a lot of exposure to other car rental/transportation plays such as Avis Budget (CAR ~ their largest US long worth over $590 million at Q1's end) and Hertz (HTZ ~ their fifth largest US long).

Just recently, we've highlighted how Tiger Global has also increased its stake in eHi Car Services.

About SRS Investment Management

Prior to founding SRS, Karthik Sarma worked at Tiger Global.  He started SRS in 2007 and has a large focus on international markets (particularly in India, China, etc) and typically invests in technology, media and other high-growth industries.  SRS's latest 13F filing indicates they manage in excess of $2.5 billion and that doesn't include their foreign positions.

About eHi Car Services

Per Google Finance, eHi is "a China-based holding company, which provides car rentals and car services to both individual customers and corporate clients. The Company utilizes mobile and Internet platforms to provide online to offline (O2O) mobility solutions. The Company operates its car rentals business primarily through its People's Republic of China (PRC) subsidiaries, Shanghai eHi Car Rental Co., Ltd. (eHi Rental) and eHi Auto Services (Jiangsu) Co., Ltd. (eHi Jiangsu), and their subsidiaries and branches."

12 West Capital Increases Position in Diana Containerships

Joel Ramin's hedge fund firm 12 West Capital has filed an amended 13D with the SEC regarding its position in Diana Containerships (DCIX).  Per the filing, 12 West now owns 26.1% of the company with over 19.28 million shares.  This is up from the 18.85 million shares they owned at the end of the first quarter.

The filing indicates that Ramin's hedge fund purchased DCIX shares throughout June, with most of the recent buying coming at the end of the month at prices between $2.2040 and $2.4181.

Shares of Diana Containerships have continued to fall and currently trade around $1.91.

Per Google Finance, Diana Containerships is "a global provider of shipping transportation services through its ownership of containerships. The Company's vessels are employed primarily on time charters with liner companies that are carrying containerized cargo along shipping routes. Each of the Company's vessels is owned by its separate wholly owned subsidiaries. The commercial and technical management of its fleet, as well as providing administrative services relating to the fleet's operations, are carried out, by its wholly owned subsidiary, Unitized Ocean Transport Limited (UOT). The Company's fleet consists of approximately seven panamax and four post-panamax containerships with a combined carrying capacity of 52,359 twenty-foot equivalent units and a weighted average age of 11.2 years. The Company's vessels include Sagitta, Centaurus, Santa Pamina, Cap Domingo, Puelo, Pucon and Cap Doukato, among others.." 

Warren Buffett Files Form 3 on Kraft Heinz (KHC)

Berkshire Hathaway's Warren Buffett has filed a Form 3 with the SEC regarding his position in Kraft Heinz (KHC).  Per the filing, Buffett's entities have disclosed ownership of 325,634,818 shares of common stock and 80,000 shares of 9.00% cumulative compounding preferred stock series A.

H.J. Heinz (former ticker HNZ) and Kraft Foods (former ticker KRFT) completed their merger recently and shares just began trading as a merged company under symbol KHC.  It's up 2% on its first day of trading.