Friday, September 23, 2016

Hedge Fund Links ~ 9/23/16

SEC charges Leon Cooperman with insider trading [SEC]

Hedge fund performance fees: the days of 2/20 are over [ValueWalk]

Dan Loeb: BOJ move will be 'positive' for markets [Reuters]

More hedge fund firms seeing a decline in assets [PIonline]

Perry Capital's assets plunge as wagers backfire [Bloomberg] 

The beginning of the end for high hedge fund fees? [Institutional Investor]

Some of the best known hedge funds can't hang on to client capital [Bloomberg] 

Funds across globe cut fees in battle for investors [Reuters]

Mark Okada says surge in passive strategies will be boon [Reuters]

Star names struggle as smaller hedge funds make hay [WSJ]

The guru who only talks to the hedge fund elite [Bloomberg]

Berkshire Hathaway Symposium Panel Videos

The Museum of American Finance has posted videos of the Berkshire Hathaway Symposium Panel.  It features Jason Zweig moderating a discussion between Tom Russo (Gardner Russo Gardner), Paul Lountzis (Lountzis Asset Management), and Whitney Tilson (Kase Capital).

The panel examines topics such as: what's the best advice you received from Warren Buffett?  What are the flaws in the Berkshire model?  Why did you buy Berkshire Hathaway stock? What aspects of Berkshire Hathaway can be emulated?  And then audience Q&A.

Embedded below are the videos from the Berkshire Hathaway Symposium Panel:

What's the best advice you received from Warren Buffett?

What are the flaws in the Berkshire model?

Why did you buy Berkshire Hathaway stock?

What aspects of Berkshire Hathaway can be emulated?

Audience Q&A.

Wednesday, September 21, 2016

What We're Reading ~ 9/21/16

But What If We're Wrong?: Thinking About the Present As If It Were the Past [Klosterman]

Profile of Alphabet's CFO Ruth Porat [Fortune]

The third transportation revolution [Lyft's CEO]

Electric vehicles: it's not just about the car [Bloomberg New Energy Finance]

US setting federal ground rules for self-driving car push [Forbes]

Profile of Ulta's CEO Mary Dillon [Fortune]

2016 US mobile app report [comscore]

On the inevitability of everything 'in the cloud' [Digits To Dollars]

8 price action signals every trader should know [Tradecity]

A look at Spanish banks [Exane]

Heavy equipment glut weighs on machine makers [WSJ]

Inside the cannibalistic culture of China's Tencent [Bloomberg]

Q&A with Chase Carey [Formula 1]

How Wells Fargo's high pressure sales culture spiraled out of control [WSJ]

A look through the eyes of beer wholesalers [Beverage World]

AT&T wants to blanket the country with gigabit wi-fi from utility poles [Gizmodo]

Tuesday, September 20, 2016

Capitalize For Kids Conference: Our Readers Save $500 on Tickets

On October 26th and 27th, Capitalize for Kids will present their 3rd annual Investors Conference at Arcadian Court in Toronto, in partnership with the Sohn Conference Foundation.  More than 20 world-renowned money managers will present their highest conviction ideas in front of 400 of the most prominent institutional investors in North America.  All proceeds are allocated to solving the toughest challenges in children's brain and mental health.

Discount for Market Folly readers:  Save $500 on individual tickets by registering here and using promo code: C4K2016MF

Capitalize For Kids Speakers List 2016

- Dan Loeb, Third Point
- Cliff Asness, AQR Capital
- Clint Carlson, Carlson Capital
- Jeff Smith, Starboard Value
- Thomas Russo, Gardner Russo & Gardner
- Ed Garden, Trian Fund Management
- Alexander Roepers, Atlantic Investment Management
- Dan Farb, Highfields Capital
- Aaron Cowen, Suvretta Capital
- Anna Nikolayevsky, Axel Capital
- Brad Dunkley, Waratah Capital
- Satish Rai, OMERS
- Tom Wagner, Knighthead Capital
- Michael Gentile, Formula Growth
- Brian D'Costa, Algonquin Capital
- Miguel Fidalgo, Triarii
- Hon. Michael Wilson, Former Ambassador for Canada to the US
- Aaron Klein, Former Chief Economist of the US Senate Banking, Housing & Urban Affairs Committee

Sessions include best ideas from prominent money managers, fireside chats with investment greats, implications of the US election, and investing in mental health.  Over the course of a day and a half, more than $1.5 million will be raised to help the toughest challenges in children's brain and mental health.

Event Details

When: October 26th & 27th, 2016

Where: Arcadian Court in Toronto, Canada


Embedded below is the conference agenda:

Click here to get tickets and remember our readers save $500 with promo code: C4K2016MF

Carl Icahn Dumps Over Half of Chesapeake Energy Position

Activist investor Carl Icahn has filed an amended 13D with the SEC regarding his position in Chesapeake Energy (CHK).  Per the filing, Icahn now owns 4.55% of the company with 28.27 million CHK shares.

This means he sold over 44.77 million shares since the end of the second quarter as he previously owned over 73 million CHK shares.

Per the filing, he sold the bulk of the position on September 19th at prices of $7.06.

Icahn also issued this statement regarding Chesapeake:  "We believe that over the last few years Doug Lawler and his team have done an admirable job, especially in light of the circumstances. We reduced our position to recognize a capital loss for tax planning purposes."

For more on this investor, we recently posted up Icahn's talk at the Delivering Alpha conference.

Per Google Finance, Chesapeake Energy is "a producer of natural gas, oil and natural gas liquids (NGL) in the United States. The Company operates in two segments: Exploration and Production, and Marketing, Gathering and Compression. The exploration and production segment is responsible for finding and producing oil, natural gas and NGL. The marketing, gathering and compression segment is responsible for marketing, gathering and compression of oil, natural gas and NGL. It has positions in resource plays of the Eagle Ford Shale in South Texas; the Utica Shale in Ohio and Pennsylvania; the Anadarko Basin in northwestern Oklahoma and the Texas Panhandle, and the Niobrara Shale in the Powder River Basin in Wyoming. Its natural gas resource plays are the Haynesville/Bossier Shales in northwestern Louisiana and East Texas; the Marcellus Shale in the northern Appalachian Basin in Pennsylvania, and the Barnett Shale in the Fort Worth Basin of north-central Texas."

Jeff Saut's Latest Market Commentary

It's been a while since we checked in on Jeff Saut, market strategist at Raymond James.  His latest investment commentary is out.  He writes,

"Speaking to higher interest rates, while a quarter point increase in the Fed Funds rate would likely cause a stutter-step in the equity markets, the impact on the overall economy should be de minimis."

Embedded below is Jeff Saut's latest market commentary entitled "I Should Have!?"

You can download a .pdf copy here.

Monday, September 19, 2016

ValueAct Capital Files 13D's on Trinity Industries, CBRE Group

Jeff Ubben's activist firm ValueAct Capital has filed two amended 13D's with the SEC.

ValueAct Ups Trinity Industries Stake

First, Jeff Ubben's firm has disclosed it now owns 7.9% of Trinity Industries (TRN) with over 12 million shares.  This is up from the 10.39 million shares they owned as of July.

The filing indicates they were buying in mid August and early September at prices of $23.xx.  The 13D also says they intend to meet with management and the board about ways to enhance shareholder value.

For more from this firm, check out some of ValueAct's other recent portfolio activity.

Per Google Finance, Trinity Industries is "a diversified industrial company that owns a range of businesses providing products and services to the energy, transportation, chemical and construction sectors. The Company's products and services include railcars and railcar parts; parts and steel components; the leasing, management and maintenance of railcars; highway products; aggregates; inland barges; structural wind towers; steel utility structures; storage and distribution containers, and trench shields and shoring products. The Company's segments include the Rail Group, Railcar Leasing and Management Services Group, Construction Products Group, Energy Equipment Group, Inland Barge Group and All Other Groups. Its Rail Group is a manufacturer of freight and tank railcars in North America used for transporting a range of liquids, gases and dry cargo, through Trinity Rail Group. The Company's Railcar Leasing and Management Services Group is a provider of rail industry services in North America."

Ubben's Firm Files 13D on CBRE Group

Second, ValueAct Capital has filed a 13D with the SEC on CBRE Group (CBG), which they own 10.3% of with over 34.6 million shares.  This stake remains unchanged from August when we reported that ValueAct added to its CBG position.

The 13D contains the standard boilerplate that they will talk with management and the board about enhancing shareholder value and also highlights that one of their partners, Brandon Boze, is on the board of directors.

Per Google Finance, CBRE Group is "a holding company that conducts all of its operations through its subsidiaries. The Company is a commercial real estate services and investment company. The Company operates through the segments: The Americas; Europe, Middle East and Africa (EMEA); Asia Pacific; Global Investment Management, and Development Services. It offers services to occupiers, owners, lenders and investors in office, retail, industrial, multifamily and other types of commercial real estate. It offers commercial real estate services under the CBRE brand name, investment management services under the CBRE Global Investors brand name and development services under the Trammell Crow Company brand name. It is focused on several competencies, including commercial property, corporate facilities, project and transaction management, tenant/occupier and property/agency leasing, capital markets solutions, real estate investment management, valuation, development services and proprietary research."

Marcato Capital Exercises Call Options on Buffalo Wild Wings

Mick McGuire's activist investment firm Marcato Capital Management has filed an amended 13D with the SEC regarding its stake in Buffalo Wild Wings (BWLD).  Per the filing, Marcato owns 5.2% of the company with 950,000 shares.

Their overall economic stake remains unchanged from when they originally filed their 13D back in August.  But the filing indicates they exercised their call options on September 12th at $114 per share.

Marcato has also put together a slide deck on its thesis on BWLD and you can view it here.

Per Google Finance, Buffalo Wild Wings is "an owner, operator and franchisor of restaurants featuring various menu items. The Company's restaurants feature a bar, which offers a selection of 20 to 30 domestic, imported and craft beers on tap, as well as bottled beers, wine and liquor. The Buffalo Wild Wings restaurants feature various menu items, including its Buffalo, New York-style chicken wings spun in one of its signature sauces from sweet to screamin' hot, which includes Sweet barbeque (BBQ), Teriyaki, Bourbon Honey Mustard, Mild, Parmesan Garlic, Medium, Honey BBQ, Spicy Garlic, Asian Zing, Caribbean Jerk, Thai Curry, Hot BBQ, Hot, Mango Habanero, Wild and Blazin', or signature seasonings, Buffalo, Desert Heat, Chipotle BBQ, Lemon Pepper, and Salt & Vinegar. Its restaurants include a multi-media system, a bar and an open layout. It operates Buffalo Wild Wings, R Taco and PizzaRev restaurants, as well as sells Buffalo Wild Wings and R Taco restaurant franchises."

Delivering Alpha Conference 2016 Speaker Transcripts

Last week we posted up notes from the Delivering Alpha Conference 2016.  It featured numerous prominent hedge fund managers and now CNBC has made transcripts from various talks available.  Click the links below to read each full transcript:

Delivering Alpha Conference 2016 Transcripts

Ray Dalio (Bridgewater) and Tim Geithner (Former Treasury Secretary): Transcript

Paul Singer (Elliott Management)Transcript

Marc Lasry (Avenue Capital) and Barry Sternlicht (Starwood): Transcript

Carl Icahn (Icahn Enterprises): Transcript

Steve Schwarzman (Blackstone Group): Transcript

Jack Lew (Treasury Secretary): Transcript

David Ganek (Level Global): Transcript 

Joseph Tsai (Alibaba): Transcript