Friday, June 9, 2017

Hedge Fund Links ~ 6/9/17

Seth Klarman says investors are missing huge risks [Business Insider]

As Point72 returns flatline, Steve Cohen eyes $20 billion for fund [Bloomberg]

John Paulson is struggling to hold onto client money [Bloomberg]

Hedge funds go to war over US defense contractor TransDigm [FT]

Elliott Management on 5 lessons that have shaped how it invests [Business Insider]

Machine learning set to shake up equity hedge funds [FT]

The quants run Wall Street now [WSJ]

Paul Tudor Jones said to back AI hedge funds [Bloomberg]

Thursday, June 8, 2017

20% Off Scuttleblurb For Our Readers: Investment Analysis and Commentary. Sample Posts Available

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[SNI] Flip or flop?

[SHW] Valuation looks stretched

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Wednesday, June 7, 2017

What We're Reading ~ 6/7/17

Investing between the lines: how to make smarter decisions decoding CEO communication [Rittenhouse]

Honored to be included in list of 50 of the best investing blogs [Acquirers Multiple]

Interview with Blackstone's Steve Schwarzman [Bloomberg]

What do you know with a high degree of confidence about investing? [Abnormal Returns]

Why it's so hard to admit you're wrong [NYTimes]

Inversion: the crucial thinking skill nobody ever taught you [James Clear]

Is Sephora killing the department store beauty counter? [Consumerist]

Estee Lauder vs L'Oreal: who's winning beauty's arms race? [Business of Fashion]

The economics of eSports [Digits to Dollars]

Profile of the founders of Atlassian (TEAM): The Wizards From Oz [Forbes]

Profile of SoulCycle's CEO [Fortune]

How the QR code has forever changed China's social habits [SCMP]

An introduction to LIDAR: the key self-driving car sensor [Voyage Auto]

Ten myths about machine learning [Medium]

Why Amazon is eating the world [Techcrunch]

On retail carnage: perception vs reality [Peridot Capitalist]

US unemployment hits lowest level since 2001 [CNN Money]

US home prices rising 2 times faster than wages [KSL]

Tuesday, June 6, 2017

Tiger Management Increaes T2 Biosystems Position

Julian Robertson's hedge fund firm Tiger Management has filed a 13G with the SEC regarding its position in T2 Biosystems (TTOO). Per the filing, Tiger now owns 5.68% of the company with over 1.73 million shares.

This is an increase of around 373,000 shares since the end of the first quarter. The filing was made due to activity on May 25th.

Per Google Finance, T2 Biosystems is "an in vitro diagnostics company engaged in developing a technology platform offering an alternative to diagnostic methodologies. The Company's T2 Magnetic Resonance platform (T2MR) enables detection of pathogens, biomarkers and other abnormalities in a range of unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum and urine, and can detect cellular targets at limits of detection as one colony forming unit per milliliter (CFU/mL). The Company's initial development efforts target sepsis, hemostasis and Lyme disease. T2MR is a miniaturized, magnetic resonance-based approach that measures how water molecules react in the presence of magnetic fields. Its platform detects a range of targets, including molecular targets, such as deoxyribonucleic acid (DNA), immunodiagnostics, such as proteins, and a range of hemostasis measurements. The Company offers T2Dx Instrument (T2Dx) and the T2Candida Panel. "

Third Point Trims Baxter Stake

Dan Loeb's hedge fund firm Third Point has filed a 13D and Form 4 with the SEC regarding its stake in Baxter International (BAX). Per the 13D, Third Point now owns 7.5% of BAX with 41 million shares.

The Form 4 indicates Third Point sold 5 million shares on June 1st at $59.5. After this sale, they still own over 41 million shares.

For more from this fund, check out Third Point's Q1 letter.

Per Google Finance, Baxter "provides renal and hospital products. The Company operates through two segments: Hospital Products and Renal. Its Hospital Products business manufactures sterile intravenous (IV) solutions and administration sets, premixed drugs and drug-reconstitution systems, pre-filled vials and syringes for injectable drugs, IV nutrition products, parenteral nutrition therapies, infusion pumps, inhalation anesthetics and biosurgery products. The Renal business offers a portfolio to meet the needs of patients with end-stage renal disease, or irreversible kidney disease and acute kidney injuries, including technologies and therapies for peritoneal dialysis (PD), hemodialysis (HD), continuous renal replacement therapy (CRRT) and additional dialysis services. Its products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors' offices and by patients at home under physician supervision. ."

Berkshire Hathaway Acquires More Liberty SiriusXM Shares Again

We've highlighted recently that Warren Buffett's Berkshire Hathaway has been buying Liberty Sirius XM (LSXMA / LSXMK). Well, they're at it again.

Per Form 4's filed with the SEC, Berkshire acquired 377,656 shares of LSXMA across May 26th, 30th, and 31st at weighted average prices around $41.xx. After these buys, they own over 14.86 million LSXMA shares.

The second Form 4 indicates they also bought 644,172 LSXMK shares on May 26th, 30th, and 31st at weighted average prices ranging from $40.9877 to $41.7432. After these buys, they own over 31 million LSXMK shares.

We've also previously noted that it seems likely that Berkshire's portfolio manager Ted Weschler is the one buying here.

For more on Berkshire Hathaway, check out a recent interview with Warren Buffett here.

Per Google Finance, Liberty SiriusXM is "Liberty Media Corporation owns interests in subsidiaries and other companies, which are engaged in the media and entertainment industries. The Company's principal businesses and assets include its consolidated subsidiaries Sirius XM Holdings Inc. (SIRIUS XM) and Braves Holdings, LLC (Braves Holdings), and its equity affiliate Live Nation Entertainment, Inc. (Live Nation). The Company's segments are SIRIUS XM, and Corporate and other. SIRIUS XM provides a subscription-based satellite radio service. Through its subsidiaries and affiliates, the Company principally operates in North America. The Company also owns a portfolio of minority equity investments in publicly traded media companies, including Time Warner, Inc. and Viacom, Inc. SIRIUS XM transmits music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services, in the United States on a subscription fee basis through two satellite radio systems."

Corvex Management Boosts Energen Position

Keith Meister's activist hedge fund Corvex Management has filed a 13D with the SEC regarding its stake in Energen (EGN). Per the filing, Corvex now owns 5.5% of EGN with over 5.37 million shares. This is up from the previous 1.34 million shares they owned at the end of the first quarter. 

The filing was made due to activity on May 22nd.  The 13D notes that they've been quite active buying call options and selling put options and you can view the full list of transactions here.

They've had discussions with management and Corvex feels that:

"(Energen) has some of the most attractive leaseholds for oil and gas development in the Permian Basin. However, despite this leading asset position, the Issuer’s operational performance has fallen short of its peer companies, leading to underperformance both in terms of financial results and shareholder returns. As a result, the Reporting Persons’ believe the Issuer needs to strongly consider what actions can be taken to enhance and maximize shareholder value – including a review of the potential value delivered to shareholders through a change of control transaction given the recent wave of acquisitions in the Permian Basin at per acre values well in excess of the Issuer’s current implied value."

For more on this fund, Keith Meister also recently presented at the Sohn Conference New York and you can catch up on his presentation here.

Per Google Finance, Energen is "an oil and natural gas exploration and production company. The Company is engaged in the exploration, development and production of oil and natural gas properties and natural gas. Its operations are conducted through subsidiary, Energen Resources Corporation and occur within the Midland Basin, the Delaware Basin and the Central Basin Platform areas of the Permian Basin in west Texas and New Mexico. The Company is focused on increasing its oil, natural gas liquids and natural gas production and proved reserves through active development and/or exploratory programs in the Permian Basin. As of December 31, 2016, oil, natural gas liquids and natural gas represented approximately 60%, 20% and 20% of its reserves. As of December 31, 2016, its development activities added approximately 327 million barrels of oil equivalent (MMBOE) of reserves from the drilling of 623 gross development, exploratory and service wells and 73 well recompletions and pay-adds."

ValueAct Capital Trims Willis Towers Watson Stake Again

Jeff Ubben's activist investment firm ValueAct Capital has been trimming more of its holdings.  Per a 13D filed with the SEC, ValueAct now owns 4.9% of Willis Towers Watson (WLTW) with 6.66 million shares.

Per Form 4's filed with the SEC, ValueAct sold 500,000 WLTW shares in total across May 25th, 26th, 30th, and 31st at around $145.xx.

This is the second time they've sold WLTW shares in recent months.

Per Google Finance, Willis Towers Watson is "a holding company. The Company operates as a global advisory, broking and solutions company. It is engaged in offering risk management, insurance broking, consulting, technology and solutions, and private exchanges. The Company operates through eight segments: Willis International; Willis North America; Willis Capital, Wholesale & Reinsurance (CWR); Willis GB; Towers Watson Benefits; Towers Watson Exchange Solutions; Towers Watson Risk and Financial Services; and Towers Watson Talent and Rewards. The Willis GB segment comprises four business units: Property and Casualty, Transport, Financial Lines and Retail Networks. The Willis Capital Wholesale and Reinsurance segment includes Willis Re; Willis Capital Markets & Advisory; Willis' wholesale business, and Willis Portfolio Underwriting Services. The Willis North America segment provides risk management, insurance brokerage and related risk services."