Appaloosa Management & Senator Investment Group Send Letter to Allergan Board

David Tepper's hedge fund firm Appaloosa Management has sent a letter together with Alex Klabin and Doug Silverman's Senator Investment Group to the board of Allergan (AGN).  They previously sent letters to AGN's board on May 7th and April 23rd as well.

Here's the text of the latest letter:

"Letter dated June 5, 2018:Board of Directors
Allergan plc
Clonshaugh Business Technology Park
Coolock, Dublin, D17 E400, Ireland

Ladies and Gentlemen:

We write concerning the conclusions drawn from Allergan’s much-heralded strategic review, publicly outlined by Chairman and CEO Brent Saunders on May 30th. Like the rest of the investment community, we were underwhelmed by the Company’s half-hearted attempt to restore strategic momentum. The result of this process is all the more disappointing given our previous discussions and correspondence (attached hereto for reference). In view of this outcome, we are compelled to express our views publicly.

The token measures outlined in Mr. Saunders’ presentation betray the Board and management’s desire to cling to a status quo that has produced three years of steadily declining stock performance and a fire-sale market valuation. It is now clear that fresh thinking is absent from the current regime, thus explaining the market’s complete loss of confidence in the stock. To that point, we reiterate our strong suggestion that at a minimum the Company (1) split the office of CEO and Chairman; (2) retain a new Chairman or CEO from outside the Company; (3) replace at least two additional directors on the current Board; and (4) upgrade management personnel in critical operating units.

Concurrent with these measures, we renew our calls for the Company to stop hiding behind an arbitrary debt reduction target as an excuse to preserve the means to pursue a transformative M&A transaction. Prioritizing such flexibility at this time makes no sense given Allergan’s undervalued equity currency, its mixed M&A record and the market’s loss of confidence in the Company’s ability to deploy capital for the benefit of shareholders. More importantly, it will not address the Company’s malaise. Instead, it is time for Allergan’s management to concentrate on running a world class pharmaceutical and aesthetics business and forego thoughts of, or the exhilaration from, an ambitious acquisition strategy.

In our conversations, Chairman and CEO Saunders has been fond of repeating a famous quotation that “the definition of insanity is doing the same thing over and over again, but expecting different results”. Until Mr. Saunders and the Board heed this advice, adopt new governance and renew the Company’s operational focus, it appears that shareholders can expect Allergan’s stock price to continue to languish."

Senator Investment Group Files 13D on Gogo

Alex Klabin and Doug Silverman's hedge fund firm Senator Investment Group has filed a 13D with the SEC regarding shares of Gogo (GOGO).  Per the filing, Senator now owns 6.5% of the company with 5.64 million shares.

This is up from the 4.96 million shares they owned at the end of 2017, as they originally built a position in the third quarter of 2017 and continued buying in the fourth quarter.  The 13D notes they've talked with management and may do so in the future.

It also discloses their recent trading activity in the stock.  They were bought in late January and late February, with primary purchases coming between $9.0251 and $9.2546.  In total, they bought over 681,000 shares.

Per Google Finance, Gogo is "s a provider of in-flight broadband Internet service and other connectivity services for commercial and business aircraft, headquartered in Chicago, Illinois"

Senator Investment Group Takes D.R. Horton Stake

Alex Klabin and Doug Silverman's hedge fund firm Senator Investment Group has filed a 13G with the SEC regarding shares of D.R. Horton (DHI).  Per the filing, Senator now owns 5.34% of the company with 20 million shares (inclusive of 5 million shares underlying call options).

This is a newly disclosed stake for the investment firm.  The filing was made due to portfolio activity on September 15th.

For more on this hedge fund, we highlighted another stock Senator has been buying.

Per Google Finance, DR Horton is "a homebuilding company. The Company constructed and sold homes in 27 states and 79 markets, as of September 30, 2015. The Company's segments include its 39 homebuilding divisions, its financial services operations and its other business activities. In the homebuilding segment, the Company builds and sells single-family detached homes and attached homes, such as town homes, duplexes, triplexes and condominiums. The Company's 39 homebuilding divisions are aggregated into six segments: East Region, South Central Region, Midwest Region, West Region, Southwest Region and Southeast Region. In the financial services segment, the Company sells mortgages and collects fees for title insurance agency and closing services. The Company has subsidiaries that conduct insurance-related operations; construct and own income-producing rental properties; own non-residential real estate, including ranch land and improvements, and own and operate oil and gas-related assets."

Senator Investment Group Boosts MGM Resorts Stake

Alex Klabin and Doug Silverman's hedge fund firm Senator Investment Group has filed a 13G with the SEC regarding its stake in MGM Resorts International (MGM).  Per the filing, Senator now owns 5.57% of the company with 31.5 million shares, which includes 22 million shares of stock issuable upon exercise of call options.

This is an increase of over 24 million shares since the end of the second quarter when they only owned 7.5 million shares.  The filing was made due to activity on September 12th.

For more on this hedge fund, we posted up another stock Senator had been buying.

Per Google Finance, MGM Resorts International "owns and operates casino resorts. The Company operates in two segments: domestic resorts and MGM China. Its domestic resorts segment consists of non-gaming operations, including hotel, food and beverage, entertainment and other non-gaming amenities. Its casino operations feature a range of slots, table games, and race and sports book wagering. Its MGM China’s operations consist of the MGM Macau resort and casino, and the development of an integrated casino, hotel and entertainment resort on the Cotai Strip in Macau. Under its resort operation, the Company's casino resorts offer gaming, hotel, convention, dining, entertainment, retail and other resort amenities. It owns Primm Valley Golf Club at the California/Nevada state line and Fallen Oak golf course in Saucier, Mississippi, among others. It owns and manages CityCenter Holdings, LLC, located between Bellagio and Monte Carlo."

Senator Investment Group Takes Hyatt Hotels Stake

Alex Klabin and Doug Silverman's hedge fund firm Senator Investment Group has filed a 13G with the SEC regarding shares of Hyatt Hotels (H).  Per the filing, Senator now owns 5.82% of Hyatt with over 2.28 million shares.

This is a newly disclosed equity stake for the firm as they previously did not own any shares as of the end of the first quarter.  The new filing was made due to activity on July 17th.

We've also highlighted other recent portfolio activity from Senator here.

Per Google Finance, Hyatt Hotels is "a global hospitality company. The Company develops, owns, operates, manages, franchises, licenses or provides services to a portfolio of properties. The Company operates through four segments: owned and leased hotels; Americas management and franchising (Americas); ASPAC management and franchising (ASPAC), and EAME/SW Asia management and franchising (EAME/SW Asia). The owned and leased hotels segment consists of its owned and leased full service and select service hotels. The Americas segment consists of its management and franchising of properties located in the United States, Latin America, Canada and the Caribbean. The ASPAC segment consists of its management and franchising of properties located in Southeast Asia, as well as China, Australia, South Korea, Japan and Micronesia. The EAME/SW Asia segment consists of its management and franchising of properties located in Europe, Africa, the Middle East, India, Central Asia and Nepal."

Senator Investment Group Shows Spirit Realty Capital Stake

Alex Klabin and Doug Silverman's hedge fund firm Senator Investment Group has filed a 13G with the SEC regarding shares of Spirit Realty Capital (SRC). 

Per the filing, Senator now owns a 7.23% ownership stake in SRC with 35 million shares.  This is a newly disclosed equity position and the filing was made due to activity on June 1st, 2017.  In late April, shares traded from $10.44 down to a low of $6.71 in May and now trade around $7.70.

Per the company's website, Spirit Realty Capital is "one of the largest publicly traded triple net-lease real estate investment trusts (REITs) in the United States."

Senator Investment Group Adds To Whiting Petroleum

Alex Klabin and Doug Silverman's hedge fund firm Senator Investment Group has filed a 13G with the SEC regarding its position in Whiting Petroleum (WLL).  Per the filing, Senator now owns 5.93% of the company with 21.5 million shares (broken down into 10 million shares and 11.5 million shares underlying call options).

This is up from the previous 7 million shares they owned at the end of 2016, so a 14.5 million increase in net exposure.  The filing was made due to activity on February 22nd.

For more on this hedge fund, we also posted up how Senator disclosed a Forest City Realty Trust position.

Per Google Finance, Whiting Petroleum is "an independent oil and gas company. The Company is engaged in development, production, acquisition and exploration activities primarily in the Rocky Mountains and Permian Basin regions of the United States. The Company operates in the segment of exploration and production of crude oil, natural gas liquid (NGLs) and natural gas. The Company's estimated proved reserves totaled approximately 820.6 Million Barrels of Oil Equivalent (MMBOE). The Company has interests in approximately 5,889 gross (3,177 net) productive wells on approximately 948,600 gross (593,900 net) developed acres across all its geographical areas. The Company's Rocky Mountains operations include assets in the states of Colorado, Montana and North Dakota. The Company's Permian Basin operations include its North Ward Estes field in the Ward and Winkler counties of Texas. Its other operations primarily relate to non-core assets in Colorado, Mississippi, North Dakota, Texas and Wyoming."

Senator Investment Group Discloses Forest City Realty Trust Stake

Doug Silverman and Alex Klabin's hedge fund firm Senator Investment Group has filed a 13G with the SEC regarding shares of Forest City Realty Trust (FCE/A).  Per the filing, Senator now owns 5.69% of the company with 13.75 million shares.

This is a newly disclosed equity stake for Senator and the filing was made due to activity on February 27th, 2017.

You can view additional recent portfolio activity from Senator here.

Per Google Finance, Forest City Realty Trust is "engaged in the ownership, development, management and acquisition of commercial, and residential real estate and land throughout the United States. The Company's segments include the Commercial Group, Residential Group, Land Development Group and Corporate Activities. The Commercial Group segment owns, develops, acquires and operates regional malls, specialty/urban retail centers, office and life science buildings, and mixed-use projects. The Residential Group segment owns, develops, acquires and operates residential rental properties, including upscale and middle-market apartments, re-use developments, for-sale condominium projects and subsidized senior housing. The Land Development Group segment acquires and sells both land and developed lots to residential, commercial and industrial customers at its Stapleton project in Denver, Colorado. It conducts all of its business, through the Operating Partnership, Forest City Enterprises, L.P."

Senator Investment Group Shows Equity Stakes in Star Bulk Carriers and Noble Corp

Doug Silverman and Alex Klabin's hedge fund firm Senator Investment Group has filed two 13G's with the SEC recently.

Senator Shows Star Bulk Carrier Equity Position (SBLK)

First, Senator has filed a 13G on Star Bulk Carriers (SBLK) indicating they own 6.83% of the company with over 4.07 million shares.  This is a newly disclosed equity position for the firm and the filing was made due to activity on January 23rd.

This was part of a private placement of common shares where Oaktree Capital and Senator pruchased at $8.154 per share.  The sale netted the company $51.5 million and they've agreed to "grant shelf registration rights to the investors for the resale of their common shares"  per a press release.

Per Google Finance, Star Bulk Carriers is "an international shipping company. The Company owns and operates a fleet of dry bulk carrier vessels. The Company's segment is operating dry bulk vessels. The Company will have a fleet of approximately 76 vessels consisting primarily of Newcastlemax and Capesize, as well as Kamsarmax, Ultramax and Supramax vessels, with a carrying capacity between 45,588 dwt and 209,537 deadweight tonnage (dwt). Its fleet, which emphasizes Capesize vessels, primarily transports minerals from the Americas and Australia to East Asia, particularly China, as well as Japan, South Korea, Taiwan, Indonesia and Malaysia. The Company's Supramax vessels carry minerals, grain products and steel between the Americas, Europe, Africa, Australia and Indonesia and from these areas to China, Japan, South Korea, Taiwan, the Philippines and Malaysia. Its vessels include Maharaj, Star Poseidon, Leviathan, Peloreus, Star Borealis, Star Angie, Star Georgia, Star Nina and Mercurial Virgo."


Senator Also Shows Noble Corp (NE) Stake

Second, the hedge fund firm also has filed a 13G on Noble (NE) indicating they own 5.76% of the company with 14 million shares.  This is another newly disclosed equity position and the activity was made due to activity on January 24th.

Per Yahoo Finance, Noble "operates as an offshore drilling contractor for the oil and gas industry worldwide. It owns and operates a fleet of mobile offshore drilling units."

Senator Investment Group Starts Brookdale Senior Living Stake

Alex Klabin and Doug Silverman's hedge fund firm Senator Investment Group has filed a 13G with the SEC regarding shares of Brookdale Senior Living (BKD).  Per the filing, Senator now owns 6.82% of BKD with over 12.69 million shares.

This is a newly disclosed equity position for the firm as they didn't report owning any shares as of the end of the third quarter.  The filing was made due to activity on November 4th.

You can view other recent portfolio activity from Senator here.

Per Google Finance, Brookdale Senior Living "is engaged in the operation of senior living communities in the United States. The Company has five segments: Retirement Centers; Assisted Living; CCRCs-Rental; Brookdale Ancillary Services, and Management Services. Its Retirement Centers segment includes owned or leased communities that are designed for middle to upper income seniors. Its Assisted Living segment includes owned or leased communities that offer housing and around the clock assistance with activities of daily life to mid-acuity frail and elderly residents. Its CCRCs-Rental segment includes owned or leased communities that offer a range of living arrangements and services to accommodate all levels of physical ability and health. Its Brookdale Ancillary Services segment includes the outpatient therapy, home health and hospice services. The Company's Management Services segment includes communities operated by the Company pursuant to management agreements."

Senator Investment Group Takes Comstock Resources Stake

Alex Klabin and Doug Silverman's hedge fund Senator Investment Group has filed a 13G with the SEC regarding shares of Comstock Resources (CRK).  Per the filing, Senator now owns 7.32% of the company with 922,754 shares (including 93,500 shares issuable upon exercise of warrants).

This is a newly disclosed equity position for the firm as they did not own any at the end of the second quarter.  The filing was made due to activity on September 13th.

For more from this fund, check out Alex Klabin on the intangibles of building a great hedge fund.

Per Google Finance, Comstock Resources is "an energy company engaged in the acquisition, exploration, development and production of oil and natural gas in the United States. The Company operates in the segment of exploration and production of oil and natural gas. The Company's oil and gas operations are concentrated in Texas and Louisiana. Its operations are focused in two operating areas: East Texas/North Louisiana and South Texas. The Company's properties in the East Texas/North Louisiana region include approximately 80,660 acres in the Haynesville or Bossier shale formations. The Company's Eagleville field includes approximately 30,220 acres located in the oil window of the Eagle Ford shale in South Texas. The Company owns interests in over 1,575 producing oil and natural gas wells, and operates over 950 of these wells. The Company owns interests in over 20 wells in the Rosita field, located in Duval County, Texas."

Senator Investment Group Increases Realogy Position

Alex Klabin and Doug Silverman's hedge fund Senator Investment Group has filed a 13G with the SEC regarding shares of Realogy (RLGY).  Senator now owns 5.12% of the company with 7.5 million shares.

This is a sizable increase from the 4 million shares they owned at the end of the second quarter.  The filing was made due to activity on August 27th.

As of the end of Q2, some of the largest holders of RLGY shares included other prominent hedge funds such as Lone Pine Capital, Paulson & Co, Glenview Capital, Pennant Capital, and Valinor Management, among others.

For more from this fund, be sure to check out Alex Klabin on the intangibles of building a great hedge fund.

Per Google Finance, Realogy is "a franchisor of residential real estate brokerages and a provider of outsourced employee relocation, and title and settlement services in the United States. The Company has four operating segments: Real Estate Franchise Services (RFG), Company Owned Real Estate Brokerage Services (NRT), Relocation Services (Cartus), and Title and Settlement Services (TRG). The RFG segment is a franchisor of residential real estate brokerage services. The NRT segment owns and operates a residential real estate brokerage business in the United States. The Cartus segment provides outsourced employee relocation services. The TRG segment provides full-service title and settlement services to its clients. The Company's portfolio of brokerage brands includes Century 21, Coldwell Banker, Coldwell Banker Commercial, ERA, Sotheby's International Realty, Better Homes and Gardens Real Estate, The Corcoran Group, ZipRealty and Citi Habitats."

Senator Investment Group Discloses Peabody Energy Position

Alex Klabin and Doug Silverman's hedge fund firm Senator Investment Group has filed a 13G with the SEC regarding shares of Peabody Energy (BTU).  Per the filing, Senator now owns 5.5% of the company with 15 million shares.  This position is inclusive of call options exercisable into 10 million shares.

This is a newly disclosed equity position as they did not report ownership at the end of the first quarter.  The filing was made due to activity on June 2nd.

You can view additional recent portfolio activity from Senator here.

Per Google Finance, Peabody Energy is "a private-sector coal company. The Company owns interests in 28 active coal mining operations located in the United States and Australia. The Company has a majority interest in 27 of those coal operations and a 50% equity interests in the Middlemount Mine in Australia. The Company also owns a noncontrolling interest in a mining operation in Venezuela. In addition to the Company's mining operations, the Company markets and broker coals from its operations and other coal producers, both as principal and agent, and trade coal and freight-related contracts through trading and business offices. The Company conducts business through four principal segments: Western United States. Mining, Midwestern U.S. Mining, Australian Mining and Trading and Brokerage. The Company's fifth segment, Corporate and Other, includes mining and export/transportation joint ventures, activities associated with certain energy-related commercial matters, Btu Conversion."

For more from this hedge fund, head to Senator's thesis on Air Products & Chemicals.

Senator Investment Group Exits API Technologies Position

Alex Klabin and Doug Silverman's hedge fund firm Senator Investment Group has filed a Form 4 and 13G with the SEC regarding shares of API Technologies (ATNY).  Per the filings, Senator has sold over 5.9 million shares of ATNY at a price of $2.41 on March 7th.

After this transaction, this means Senator has completely exited their stake in API Technologies and no longer own any shares.

You can view other recent portfolio activity from Senator here.

Per Google Finance, API Technologies "designs, develops and manufactures systems, subsystems, radio frequency (RF) and secure communications products, as well as provides electronics manufacturing and engineering services. Its product lines include engineered products (including unmanned aerial vehicles (UAVs), aiming systems and synthesizers), secure communications products (including TEMPEST and emanation security, encryption and secure networking products), subsystems and components (including custom hybrids, terminals, transistors and magnetics), RF and microwave products (including custom filters, amplifiers, connectors and antennas), sensors, and power systems. It operates in two segments: Systems & Subsystems, and Secure Systems & Information Assurance."

Senator Investment Group Starts Brookdale Senior Living Position

Alex Klabin and Doug Silverman's hedge fund firm Senator Investment Group has filed a 13G with the SEC on shares of Brookdale Senior Living (BKD). 

This is a newly disclosed equity stake for Senator and they now own 5% of the company with over 6.2 million shares.  The filing was made due to activity on February 24th.

Per Google Finance, Brookdale Senior Living is "an owner and operator of senior living communities throughout the United States."

For more from this hedge fund, we recently posted up Senator's thesis on Air Products & Chemicals (Q4 letter) and detailed some of their other recent portfolio activity here.

Senator Investment Group's Thesis on Air Products & Chemicals (Q4 Letter)

Alex Klabin and Doug Silverman's hedge fund Senator Investment Group has built a sizable position in Air Products & Chemicals (APD) in the fourth quarter, according to their Q4 letter.

We've previously highlighted how Bill Ackman's Pershing Square is long APD and now Senator has bought a stake as well.


Senator's Air Products & Chemicals Thesis

The hedge fund likes that the company is involved in an attractive business with significant barriers to entry and oligopoly-like qualities.  There's 5 suppliers of industrial gasses: APD, Praxair, Linde and Air Liquide, and Airgas.  

Senator writes,

"Air Products trades at 18.1x 2014 earnings, but only 12.7x recurring free cash flow, a more relevant metric given the stable, cash generative nature of the business.  Moreover, for the last few years, Air Products' earnings and cash flow potential have been depressed by large investments in growth projects that have yet to impact financial results."

They like that industrial gas businesses see the majority of their revenues linked to long-term contracts.

Senator notes Pershing's involvement as a positive as the company has ousted the CEO and added new directors to the board.  Senator thinks a new CEO could potentially be announced during the first quarter and will put in place a restructuring plan. 

They feel the company's cost cutting opportunity to be around $400 million or so ("5% of its cost base and 27% of trailing EBIT of $1.5 billion") and point to how competitor Praxair went through something similar in 2000.  The hedge fund's base case for Air Products assumes that a new CEO can capture half of that opportunity.

Senator believes the company could also reap the benefits of the capital investments they made in the past few years as plants come online.  They see $175 million of incremental EBIT from this by 2016, as well as $450 million of increment EBIT opportunity from 'unutilized' merchant gas sales.  Senator estimates earnings growth of 20% in both 2015/16.

Senator concludes,

"A new CEO, a focused board and a large, constructive shareholder will very likely bring about other value maximizing moves, such as the sale, spin or MLP conversion of Air Products' hydrogen pipelines and additional cash returns to shareholders through issuances of project-level debt. In terms of downside, we think the 2014 guidance from the current management is reasonable and translates into $8.70 of free cash flow per share.  In our view, it's hard to envision the shares trading for less than 11x FCF (or 10% downside from current levels) given the defensive characteristics of the business and the imminent announcement of a new CEO.  Over the next two years, we believe Air Products' shares could trade to 15x our $12 free cash flow estimate or $180 per share, implying close to 70% upside in a large cap, high-quality business."

For more on this hedge fund, we've posted some of Senator's other recent portfolio activity here.

Senator Investment Group Discloses Trade Street Residential Stake

Doug Silverman and Alex Klabin's hedge fund Senator Investment Group has filed a 13D and Form 3 with the SEC regarding their position in Trade Street Residential (TSRE).

This is a newly disclosed position for the hedge fund and they now own 25.6% of the company with over 9.3 million shares.  The filing was made due to activity on January 16th.

The fine print of the 13D indicates that Senator entered into a Standby Purchase Agreement (on November 12th, 2013) where they would purchase all of the unsubscribed shares of common stock in the issuer's $100 million rights offering to existing shareholders.

Senator also nominated one of their employees to the board of the company.

Per Google Finance, Trade Street Residential is "a full service, vertically integrated, self-administered and self-managed corporation focused on acquiring, owning, operating and managing garden-style and mid-rise apartment communities in mid-sized cities and suburban submarkets primarily in the southeastern United States, including Texas."

You can view some of Senator's past portfolio activity here.

Senator Investment Group Adds to PHH Position

Alex Klabin and Doug Silverman's hedge fund Senator Investment Group recently filed a 13G with the SEC regarding shares of PHH (PHH).  Per the filing, Senator now owns 7.6% of the company with 4,391,007 shares.

The fine print of the filing shows that this stake is inclusive of notes convertible into 391,007 shares.  The filing was required due to activity on September 20th and this updated stake includes over 1.9 million more shares than they had at the end of the second quarter.

Per Google Finance, PHH is "an outsource provider of mortgage and fleet management services. PHH operates in three segments: Mortgage Production, Mortgage Servicing and Fleet Management Services. The Company provides mortgage banking services to clients, including financial institutions and real estate brokers, throughout the United States. The Company’s mortgage banking activities include originating, purchasing, selling and servicing mortgage loans through its wholly owned subsidiary, PHH Mortgage Corporation and its subsidiaries (PHH Mortgages). It provides commercial fleet management services to corporate clients and government agencies throughout the United States and Canada through its wholly owned subsidiary, PHH Vehicle Management Services Group LLC (PHH VMS). PHH VMS is a fully integrated provider of fleet management services with a range of product offerings, including managing and leasing vehicle fleets and providing other fee-based services for its clients’ vehicle fleets."

Senator Investment Group Discloses Taminco Position

Alexander Klabin and Doug Silverman's hedge fund Senator Investment Group filed a 13G with the SEC regarding shares of Taminco (TAM).  Per the filing, Senator has revealed an 8.82% ownership stake in Taminco with 5,750,000 shares.

The filing was required due to portfolio activity on April 18th as the company went public.  According to IPO materials, Taminco is the "world’s largest pure play producer of alkylamines and alkylamine derivatives."

In other recent portfolio activity from the hedge fund, we posted about how Senator added to its International Paper stake.

Senator Investment Group Adds To International Paper Position

Alex Klabin and Douglas Silverman's hedge fund Senator Investment Group recently filed a 13G with the SEC regarding shares of International Paper (IP).  Per the filing, Senator has disclosed a 5.2% ownership stake in IP with 23,088,500 shares.  The filing was required due to portfolio activity on March 28th.

This marks a 452% increase in the number of shares they own.  At the end of 2012, Senator owned 4,179,065 shares, but they also owned call options representing 3,500,000 shares as well.

Per Google Finance, International Paper is "a global paper and packaging company, with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. The Company operates in four segments: Industrial Packaging; Printing Papers; Consumer Packaging, and Distribution."

About Senator

Alex Klabin and Doug Silverman founded the hedge fund firm in February 2008 with a focus on global long/short investing in distressed assets and equities. They were originally seeded by Blackstone Strategic Alliance Fund with $150 million and at the end of 2012 reported holdings worth $4.5 billion on their 13F filing (which isn't indicative of their entire AUM total).  Prior to founding Senator, both worked at Jamie Dinan's York Capital.

For more on this hedge fund, we've also posted up Senator's pitch on Rayonier (RYN) as well.