Evan Vanderveer Long Keck Seng Investments & Fleetwood Corp at Capitalize For Kids Sohn Canada

We're posting up notes from the Capitalize For Kids Sohn Canada conference that just took place.  Next up is Evan Vanderveer of Vanshap Capital who pitched a long of Keck Seng Investments and long Fleetwood Corp.


Evan Vanderveer's Sohn Canada Presentation

Co-runs $45m AUM with a focus on global deep value investing.

Pitched LONG Keck Seng Investments, a real estate company, with property holdings around the world. Currently, a HKD $3B market cap and owns assets such as W hotel in San Francisco (15% cap rate purchase), Owns 7 different residential and 3 commercial buildings in Macau and is in the process of buying the Sofitel Hotel in New York (paying 5% cap rate). It is low levered world class real estate property, trades at ~70% of tangible book, ~10% FCF at these levels. About 30% of estimated NAV using market rates. Even if they decrease the value of the assets by 40%, you get a double from the current stock price.

Some potential catalysts include turning the W Hotel into a REIT, continuing to divest Macau real estate, initiating capital returns to shareholders. The company has very large insider ownership, which makes it quite illiquid. The company has doubled FCF per share last 3 years while continuing to make smart acquisitions.


Next, pitched LONG Fleetwood Corporation, an Australian manufactured accommodation company (Makes RV's and such). Brand names are Camec, Coromal/Windsor and it’s currently trading ~70% of tangible book value and 8x 2015 EPS. Believes it has significant underlying earnings power, and half the current is associated with government backed cash flow stream from Osprey (subsidized housing).

EBIT has come way down for a few reasons, causing Net Debt-EBITDA to creep up to 2-3x. Camec has been hurt by foreign price competition, particularly from China and Asia in general. They have also worked to restructure Coromal/Windsor brands. If the company can reap the benefits of a recovery and some cost cutting, can reach 0.45 EPS in 2015, price target at $4.5. (~65% upside from closing prices).

Be sure to check out the rest of the presentations from Capitalize For Kids Sohn Canada here.

Michael Thompson's Presentation on Golar LNG: Capitalize For Kids Sohn Canada

We're posting up notes from the Capitalize For Kids Sohn Canada conference that just took place.  Next up is Michael Thompson of BHR Capital who pitched Golar LNG (GLNG) as a long.


Michael Thompson's Sohn Canada Presentation

Pitched LONG Golar LNG (GLNG). Has an upstream, midstream and downstream business. Management used to run Seadrill and were real money makers. Thinks the base case for the Legacy Golar business is worth north of $30.

However, MLP (FLNG) is where the real upside potential exists; FLNG #1 $20, FLNG #2 $5, FLNG#3 $0 (to be conservative). Valuation is using current spot day rates, assumes no growth in the legacy business, no benefit from existing MLP, which he admitted is very unlikely to happen.

Overall, believes the business could be worth $90, if all 3 vessels were contracted out. Recently, Golar’s share price has suffered due to the selloff in commodities, allowing for the opportunity.

Be sure to check out the rest of the presentations from Capitalize For Kids Sohn Canada here.

Shawn Foley's 2 Stock Picks at Capitalize For Kids Sohn Canada Conference

We're posting up notes from the Capitalize For Kids Sohn Canada conference that just took place.  Next up is Shawn Foley of Avenue Capital Group who pitched long YRC Worldwide (YRCW) and long Meritor (MTOR).


Shawn Foley's Sohn Canada Presentation

Manages the Avenue Capital US Strategy, distressed debt with US leveraged finance focus with firm wide AUM of $14B.

Pitched LONG YRC Worldwide (YRCW), a asset-light trucking company with recent troubles. Waiting for the story to play out.

Next, pitched LONG Meritor (MTOR) – only a quick overview. 

Be sure to check out the rest of the presentations from Capitalize For Kids Sohn Canada here.

Jody Lanasa's 2 Investment Ideas at Capitalize For Kids Sohn Canada Conference

We're posting up notes from the Capitalize For Kids Sohn Canada conference that just took place.  Next up is Jody Lanasa of Serengeti Asset Management who pitched long Fortress Investment Group (FIG) as well as long Kodak.


Jody Lanasa's Sohn Canada Presentation

$1.6B in assets, utilizes an opportunistic value investing strategy.

Pitched LONG Fortress Investment Group (FIG). A global asset management firm with ~$65B AUM ($5B is permanent capital). Does about $940M in revenue and has grown assets by 11% a year since being public. Currently trades at 6x earnings, a 14% dividend yield, which he believes is sustainable. Without considering the FIG segment (has not maximized incentive fees recently), believes the company it’s worth $10, including, is valued at $12.69.

Next, pitched LONG Kodak. Revenues have suffered recently and they had to file for bankruptcy. During the restructuring, they exited the legacy businesses (the cameras and traditional printers). Today, they have over 7000 patents, with a cumulative cost of $5B to develop. The company has than $1B in debt (< 1x Net Debt-EBITDA) and unfunded pension liability. Believes investors are NOT giving them credit or appreciation for monetizing $10/share in cash of “hidden” assets (property, run-off businesses). In addition, they have a couple fast growing revenue generating business such as creating touch screens 30-50% cheaper than other competitors for tablets, phones, etc. Price target $59 (226% upside) within 12 months.

Be sure to check out the rest of the presentations from Capitalize For Kids Sohn Canada here.

Chuck Akre at Capitalize For Kids Sohn Canada Conference

We're posting up notes from the Capitalize For Kids Sohn Canada conference that just took place.  Next up is Chuck Akre of Akre Capital Management who presented four case studies.


Chuck Akre's Sohn Canada Presentation

He presented four case studies of companies who have a successful capital allocation record and high returns on tangible capital.  Quickly outlined Danaher (DHR), Colfax (CFX), and Berkshire Hathaway (BRK.A), however no specific recommendations were given.  It should be pointed out, however, that CFX has seen quite the drastic sell-off recently and it has been one of Akre's top holdings for some time.

Be sure to check out the rest of the presentations from Capitalize For Kids Sohn Canada here.

Aaron Cowen's Long Burger King & Liberty Global: Capitalize For Kids Sohn Canada Conference

We're posting up notes from the Capitalize For Kids Sohn Canada conference that just took place.  Next up is Aaron Cowen of Suvretta Capital who pitched long Burger King Worldwide (BKW) and long Liberty Global (LBTYA / LBTYK).


Aaron Cowen's Sohn Canada Presentation

Pitched LONG Burger King Worldwide (BKW). Believes the stock has bond like features and can generate $2/share FCF. Mentioned Tim Horton’s deal was a huge “game changer”, especially considering the backers, 3G Capital. Can cut lots of costs within Tim Horton’s and turn it into a more profitability franchiser (similar to early days at BK following 3G deal). Thinks there is a possibility for another deal, a pizza chain perhaps.

Next, pitched LONG Liberty Global (LBTYA / LBTYK). An amazing compounder with legendary management team and board (John Malone). Experiencing topline growth and has the German asset upside. Should trade at a 7.5 yield, resulting in a price target of $60.

Be sure to check out the rest of the presentations from Capitalize For Kids Sohn Canada here.

What We're Reading ~ Hedge Fund Links 10/24/14

Paul Tudor Jones says commodities will be ugly until 2020 [Business Insider]

Investors add $18b to hedge funds in Q3 [FINalternatives]

On hedge funds' use of social media [ValueWalk]

A look at Paulson & Co's recent activity [ii alpha]

Children's Investment Fund drops Coal India campaign & sells stake [FT]

Bill Ackman targets stake in US company [Bloomberg]

Lukewarm reaction to corporate splits ding hedge funds [WSJ]

Hedge fund favorites tumble with average stock loss 16% [Bloomberg]

Misery widespread at hedge funds [WSJ]

Paulson urges Allergan to consider buying Shire [Dealbook]

Top pension funds probed for hedge fund use [Bloomberg]

What We're Reading ~ Analytical Links 10/23/14

On the mantra that interest rates have to rise [Aleph Blog]

Why market volatility matters: it makes investors do stupid things [Abnormal Returns]

A look at Hertz Global [Seventeen Mile]

On how much Bank of America is actually making [Bloomberg View]

Ocwen still under scrutiny from regulators [Bloomberg]

Some companies should stop giving forecasts [Herb Greenberg]

How should investors view cash? [Vanguard]

Profile of Jim Koch, the head of Sam Adams [Atlantic]

Enhancing financial stability by improving culture in FinServices industry [NY Fed]

Has IBM been utilizing their cash poorly? [Dealbook]

Full Vanity Fair interview with Apple's Jony Ive [Apple Insider]

What makes a great investor from a venture capital perspective [Product Hunt]

Third Point's Q3 Letter: Long Amgen, eBay & Alibaba, Exited Sony

Dan Loeb's hedge fund firm Third Point is out with its third quarter letter.  In it, the firm reveals that they've added to their stake in Amgen (AMGN), established a sizable new position in eBay (EBAY), and have a significant direct investment in the newly public Alibaba (BABA). 

Additionally, they've exited their long of Sony.  They also reduced or exited positions in AIG, Hertz, Softbank, LNG.

Then, with the recent market volatility, they lifted some hedges and added back to positions that they had previously sold at higher levels.  Third Point writes, "Although consensus has shifted to lower growth, slower inflation, modest rates, and continued monetary expansion, we think the markets will resume an overall upward trajectory in the US through year-end."

Embedded below is Third Point's Q3 letter where they specifically talk about AMGN, EBAY, BABA and SNE:



You can download a .pdf copy here.

Corvex Capital's Presentation on Crown Castle (CCI)

At the Robin Hood Investors Conference the past few days, Keith Meister of Corvex Capital sat down with CNBC to talk about his positions.

He owns almost $1 billion worth of Crown Castle International (CCI), the wireless tower operator.  He says it's the best combination of real estate and telco.  He likes their fixed cashflow and that they benefit from the big

He says the problem with CCI is they need to payout cash to shareholders by ramping up a dividend and growing that dividend at 10% a year.

Meister also noted that he's a passive shareholder of Allergan (AGN) and likes being aligned with Bill Ackman's Pershing Square.  Simply put, he wants AGN to sell their company for the highest price possible.


Embedded below is the video of Meister's interview at Robin Hood:



As well as Meister's interview on Allergan:





Additionally, here's Corvex's presentations on CCI via embedded slideshows below:

Letter to CCI Shareholders:




CCI Presentation:




Robin Hood CCI Presentation:




You can download the .pdf's here.

David Einhorn: Seeing Buying Opportunities Past Few Weeks

At the Robin Hood Investors Conference this week, Greenlight Capital's David Einhorn sat down with CNBC to talk markets.  He said he's seeing a lot of opportunities now and has bought "a bunch of things" the past couple of weeks.

Einhorn says he's not concerned with the day-to-day swings of the market as that's not his circle of competence.  He mentioned he hasn't been as long as some other people and has used the recent weakness to add to positions/establish new ones.

He continues to like Apple (AAPL), saying it trades at 10x next year's earnings net of cash.  The Greenlight founder also continues to be short AthenaHealth (ATHN).

Lastly, he likes SunEdison (SUNE) and thinks it can head to $32 per share (just under $19 now), arguing that it's a simple thesis but a complicated financial story since they own interests in various companies.


Embedded below are the videos of Einhorn's interview at Robin Hood:


Video 1




Video 2




Video 3




Video 4

Robin Hood Investors Conference 2014: Summary of Stock Picks

The 2014 Robin Hood Conference took place over the past two days in New York where hedge fund managers presented their latest investment ideas to benefit the Robin Hood Foundation which fights poverty.  Julia La Roche of Business Insider tweeted tidbits from the event and here's an aggregation of them all.


Stock Picks From Robin Hood Investors Conference 2014


David Einhorn (Greenlight Capital): long SunEdison (SUNE), Greek banks like Alpha and Piraeus (via warrants).  Short French debt.

David Tepper (Appaloosa Management): short the Euro.

Larry Robbins (Glenview Capital): long Community Health (CYH), Realogy (RLGY), VCA (WOOF), Fidelity National Financial (FNF)

Dan Loeb (Third Point): long Amgen (AMGN) and has talked to management

Paul Tudor Jones (Tudor Investment Corp): Thinks commodities will be a mess until 2020, likes US stocks.

Jim Chanos (Kynikos Associates): Short Petrobras

Scott Ferguson (Sachem Head): Long Comcast (CMCSA).  He previously worked at Ackman's Pershing Square.

Keith Meister (Corvex Capital): Long Crown Castle International (CCI), also long Allergan (AGN).

Zach Schreiber (PointState Capital): ex-Duquesne guy, used to work with Stan Druckenmiller.  Long Cheniere Energy (LNG).

Nehal Chopra (Tiger Ratan Capital): long Charter Communications (CHTR)

Fred Wilson (Union Square Ventures): Venture Capital, not equities but insinuated he'd be short Netflix (NFLX), Amazon (AMZN), and eBay (EBAY).

Tom Wagner (Knighthead Capital): long American Airlines (AAL)

Matthew Sidman (Three Bays Capital): long Churchill Downs (CHDN)

Ricky Sandler (Eminence Capital): long Telefonica Brasil (VIV) and eBay (EBAY)

Traci Lerner (Chesapeake Partners): long American Airlines (AAL), Gencorp (GY) and Eagle Materials (EXP)

Whitney Tilson (Kase Capital): long Sodastream (SODA) and Micron (MU).  Short Lumber Liquidators (LL) and Exact Sciences (EXAS)

Ivy Zelman (Zelman Associates): long homebuilders, Lennar (LEN), Pulte (PHM), Toll (TOL), as well as Fortune Home & Security (FBHS) and Mohawk (MHK).

Bill Eigen (JPMorgan): Short bonds to play volatility

Nathaniel August (Mangrove Partners): Short Worldwide Wrestling Entertainment (WWE), long Fortress Investment Group (FIG)

Oleg Nodelman (EcoR1 Capital): long Clovis (CLVS)

Amish Mehta (SQN Investors): long Blucora (BCOR)

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• Michael Connor, Consolidated Investment Group 
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When: November 11-13, 2014

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Richard C. Wilson
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Wilson Conferences
Family Offices Group Association
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Portland, Oregon 97229
Team@WilsonConferences.com
http://WilsonConferences.com/Super

The New House of Money: Jim Chanos' Interview With Steven Drobny

Steven Drobny has released a chapter from his new book, The New House of Money. Chapter 2, The Biggest Short, features an interview with short seller Jim Chanos of hedge fund Kynikos Associates.

Embedded below is the chapter from The New House of Money:



You can find out more about the book here.

Bridger Capital Increases Position in The Medicines Company

Roberto Mignone's hedge fund firm Bridger Capital has filed a 13G with the SEC regarding their stake in The Medicines Company (MDCO).  Per the filing, Bridger now owns 5.1% of MDCO with over 3.3 million shares.

This means they've boosted their stake by over 1.44 million shares since the end of the second quarter.  The filing was made due to activity on October 8th.

You can view additional portfolio activity from Bridger here.

Per Google Finance, Medicines Co is "a pharmaceutical company focused on the treatment of critical care patients through the delivery of medicines to the global hospital marketplace. The Company has three marketed products: Angiomax(bivalirudin), Cleviprex (clevidipine butyrate) injectable emulsion and its ready-to-use formulation of Argatroban. It also has a pipeline of acute and intensive care hospital products in development, including three late-stage development product candidates, cangrelor, oritavancin and MDCO-157, and two early stage development product candidates, MDCO-2010 and MDCO-216. All of its acute care generic products are injectable products."

JANA Partners Ramps Up Hertz Stake, Files 13D

Barry Rosenstein's hedge fund firm JANA Partners has filed a 13D with the SEC regarding their stake in Hertz Global Holdings (HTZ).  Per the filing, JANA now owns 7% of HTZ with over 32 million shares (including options to purchase 11.37 million shares).

They've increased their position size by over 26.1 million shares since the end of the second quarter.  The filing was required due to portfolio activity on October 10th and notes that while they were our purchasing shares in mid-October around $21.67, they also acquired a lot of shares upon the exercise of options.

JANA's 13D indicates JANA has had (and may continue to have) discussions with the board of directors regarding management succession and board composition.

They're not the only hedge fund who has been intrigued by shares of HTZ as they've fallen.  Last week we pointed out that Glenview Capital's Larry Robbins was positive on car rental companies (specifically HTZ and Avis Car Budget (CAR)).

Hertz has been somewhat of a hedge fund hotel and and lot of investors have come and gone.  As a result, shares have been more volatile.  Clearly, JANA has seen this volatility as opportunity.

JANA has been actively trading recently and we highlighted how they exited their QEP Resources stake and added to their Walgreen position.

Per Google Finance, Hertz is "its operating company and a direct wholly owned subsidiary of Hertz Investors, Inc., which is wholly owned by Hertz Holdings. Its business operates in two segments: rental and leasing of cars, crossovers and light trucks (car rental), and rental of industrial, construction and material handling equipment (equipment rental). In its equipment rental business segment, it rents equipment through approximately 340 branches in the United States, Canada, France, Spain, Italy, China and Saudi Arabia, as well as through its international licensees."

JANA Partners Exits QEP Resources

Last month, we drew attention to the fact that hedge fund JANA Partners had reduced its QEP Resources stake.  With a newly filed 13D, Barry Rosenstein's activist firm has disclosed that they no longer own a stake in the company.

The filing was made due to activity on October 13th.  Previously, JANA had owned over 12.96 million shares. 

Per their latest 13D filing, JANA sold over 2.3 million shares at $22.50 on October 14th, and really ramped up liquidation of the rest of their stake on October 15th at prices ranging from $20.68 to $21.22.

For more on this hedge fund, just yesterday we highlighted some recent buying activity from JANA in another stock.

Per Google Finance, QEP Resources "operates in three lines of business: gas and oil exploration and production, midstream field services, and energy marketing. It conducted through three principal subsidiaries: QEP Energy Company (QEP Energy) acquires, explores for, develops and produces natural gas, oil, and natural gas liquids (NGL); QEP Field Services Company (QEP Field Services) provides midstream field services, including natural gas gathering, processing, compression and treating services for affiliates and third parties; andQEP Marketing Company (QEP Marketing) markets affiliate and third-party natural gas and oil, provides risk-management services, and owns and operates an underground gas-storage reservoir."

Viking Global Updates Wayfair Stake

Andreas Halvorsen's hedge fund firm Viking Global has filed a 13G with the SEC regarding Wayfair (W).  Per the filing, Viking now owns 12.6% of the company with 1,750,236 shares.

It should be noted that Viking also filed a Form 3 regarding Wayfair indicating that they previously owned Class B shares and they were converted into Class A common stock.

Viking acquired 400,000 shares at $29 per share in connection with the company's IPO on October 2nd.  Additionally, they acquired 25,000 shares at $36 and 54,250 shares at $35.53 in open market transactions.

You can view other portfolio activity from Viking Global here.

Per Google Finance, Wayfair is "transforming the way people shop for their homes. The Company has created online destinations for the home. Through its e-commerce business model, the Company offers visually inspiring browsing, compelling merchandising, easy product discovery and prices for over seven million products from over 7,000 suppliers across five brands: Wayfair.com, Joss & Main, AllModern, DwellStudio and Birch Lane. The Company’s technology and data focus facilitates critical e-commerce capabilities, such as shopping experiences across its five brands, consumer targeting and personalization, and anytime, anywhere shopping across its Websites, mobile-optimized Websites and mobile applications.The Company offers consumers a one-stop shop with home goods pricing designed to be on par with big box retailers and a merchandising experience designed to be on par with specialty retailers."

Larry Robbins: Doesn't Believe This is a Change in Tone in the Market

Glenview Capital's Larry Robbins sat down for an interview with CNBC recently and here's what he had to say:

They're looking at what's happening to the economy and to liquidity.  They don't think there's a systemic issue out there.

He says, "Our own checks with companies indicate that the economy is doing reasonably well in the US, clearly some challenges overseas.  We don't believe that this a change in tone in the market that's likely to be here to stay.  We believe that this is a transitory risk problem."

Robbins also pointed to all the good news coming the US consumer's way recently: wages up, price of oil down.

Glenview took down exposure in the second week of September (net exposure) due to the laundry list of risk items.  They've started to re-risk about halfway to where they were before, as buying opportunities have presented themselves recently.   He argued that certain stock movements have outdone their fundamentals.

He specifically pointed out the rental car industry as being annihilated recently and called it a rational oligopoly as 3 players control 95% market share.  He said the Hertz (HTZ) CEO change has happened and likes Avis Budget's (CAR) opportunity ahead.  Robbins also said the travel industry has been impacted by the ebola scare, but didn't name any companies specifically.


Embedded below are the videos of Robbins' CNBC interview:

Video 1


Video 2


You can view some of Glenview's portfolio activity here.

JANA Partners Adds to Walgreen Stake

Barry Rosenstein's activist hedge fund JANA Partners has filed a Form 4 with the SEC regarding their stake in Walgreen (WAG).  Per the filing, JANA now owns 13.75 million shares of WAG.

They were out buying on October 10th, 13th, and 14th at prices of $62.80, $62.02, and $60.68.  They purchased 1.25 million shares in total recently.  Rosenstein is also on WAG's board of directors.

Shares of WAG were hit in August after the company announced they'd be completing the Alliance Boots merger but would not be doing a tax inversion, something many investors were hoping for.

You can view additional recent portfolio activity from JANA here.

ValueAct Again Buys Allison Transmission Shares

Jeff Ubben's activist firm ValueAct Capital has filed yet another Form 4 with the SEC regarding their stake in Allison Transmission (ALSN).  Per the filing, ValueAct has purchased an additional 200,000 ALSN shares.

They were buying on October 10th at around $27.62 and October 13th around $27.09.  In total, their position size is now over 19.05 million shares.

As we've highlighted previously, the most recent issue of our Hedge Fund Wisdom newsletter analyzed ALSN if you want to read up on the bull/bear thesis.

Balyasny Asset Management Boosts Churchill Downs Position

Dmitry Balyasny's firm Balyasny Asset Management has filed a 13G with the SEC regarding their stake in Churchill Downs (CHDN).  Per the filing, Balyasny now owns 5.24% of the company with 909,724 shares.

This marks an increase of 285,477 shares in their position size since the end of the second quarter.  The filing was required due to activity on October 7th.

Per Google Finance, Churchill Downs is "a diversified provider of pari-mutuel horseracing, casino gaming, entertainment, and is the country’s premier source of online account wagering on horseracing events. The Company offers gaming products through its casino in Mississippi, its slot and video poker operations in Louisiana and its slot and poker operations in Florida."

Eminence Capital Discloses FNFV Group Stake

Per a 13G filed with the SEC, Ricky Sandler's hedge fund firm Eminence Capital has revealed a new position in FNFV Group (FNFV).  They now own 6.1% of shares via their 5.55 million share position.  The filing was made due to activity on September 30th.

FNFV was spun-off from Fidelity National Financial (FNF) this summer.  Each 'old' share of FNF was converted into a new share of FNF and 0.3333 of a share of the newly created FNFV.  The latter is a tracking stock, and that's what Eminence has now reported a stake in.

We've also posted other recent portfolio activity from Eminence here.

Per Yahoo Finance, FNFV stands for Fidelity National Financial Ventures and it operates as the investment arm of Fidelity National Financial. 

What We're Reading ~ Analytical Links 10/15/14

Berkshire Beyond Buffett: The Enduring Value of Values [Lawrence Cunningham]

On spectrum value and a case for Verizon [Bronte Capital]

Importance of ROIC: A glance at the last 42 years of Wells Fargo [Base Hit Investing]

Building the perfect investor [Millennial Invest]

A look at the potential future for the cable industry [GlennChan]

Pay TV's new worry: 'shaving' the cord [WSJ]

Six figure incomes - and facing financial ruin [WSJ]

T-Mobile's stock slump offers buying opportunity [Yahoo]

On how Buffett's portfolio managers are faring [Fortune]

Why millennials are shunning cars [Washington Post]

The freelance economy and word of mouth [HBR]

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Richard C. Wilson
CEO & Founder
Family Offices Group
Phone: (212) 729-5067
E-Mail: Clients@FamilyOffices.com
http://FamilyOffices.com
http://WilsonConferences.com/Super

Einhorn's Greenlight Capital Files 13D on Civeo

David Einhorn's hedge fund firm Greenlight Capital has filed a 13D on shares of Civeo (CVEO).  Per the filing, they now own 9.99% of the company with over 10.65 million shares.

This means they've boosted their holdings by over 4.5 million shares since the end of the second quarter.  The filing was made due to activity on September 30th but they've continued to buy into October.  They've purchased shares in the $12.37 range recently.

Greenlight originally received shares of CVEO in the spin-off from Oil States International (OIS), which they also own.

Einhorn's 13D indicates that they've had conversations with the board and made the following suggestions: the company should take on leverage to make its capital structure more appropriate for a real estate company, the company should aggressively return capital to shareholders via dividends, and the company should replace its CEO.

For more from this hedge fund, check out Einhorn's recent comments at the Great Investors' Best Ideas conference this week.

ValueAct Buys More Allison Transmission

Earlier this week, we highlighted that Jeff Ubben's hedge fund firm ValueAct Capital was out buying some Allison Transmission (ALSN).  With the recent market weakness, that trend continued over the past few days.

Per a Form 4 filed with the SEC, ValueAct Capital has disclosed they've purchased 275,000 additional shares of ALSN at prices ranging from $27.64 to $27.86 on October 7th, 8th, 9th.  After these buys, they now own 18.85 million ALSN shares.

ALSN was just featured in the equity analysis section of our Hedge Fund Wisdom newsletter recently.  Sign up here to immediately catch up on the name and the investment thesis.

Baupost Group Boosts Keryx Biopharmaceuticals Stake

Seth Klarman's investment firm Baupost Group has filed an amended 13G regarding their position in Keryx Biopharmaceuticals (KERX).  Per the filing, Baupost now owns 19.93% of the company with 18.3 million shares.

They've boosted their position size by over 7.76 million shares since the end of the second quarter.  The filing was required due to portfolio activity on September 30th.

You can view other portfolio activity from Baupost here.

Per Google Finance, Keryx Biopharmaceuticals "is focused on the acquisition, development, and commercialization of pharmaceutical products for the treatment of renal disease. The Company is developing KRX-0502, an investigational, ferric citrate, oral compound that binds to phosphate. Under the name Zerenex, KRX-0502 has completed a United States-based Phase III clinical program for the treatment of hyperphosphatemia in patients with chronic kidney disease (CKD) on dialysis."

Eminence Capital Increases TIBCO Software Position

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding their stake in TIBCO Software (TIBX).  Per the filing, Eminence now owns 5.4% of the company with over 8.81 million shares.

This means they've increased their position size by over 3.52 million shares since the end of the second quarter.  The filing was required due to portfolio activity on September 29th.

We've posted up additional recent portfolio activity from Eminence here.

Per Google Finance, TIBCO Software is "a provider of middleware and infrastructure software. The Company’s standards-based software platform enables customers to create flexible, event-driven applications from infrastructure and deliver real-time, actionable insights. It offers a range of software products. It's products are licensed by companies all over the globe in diverse industries, such as financial services, telecommunications, energy, retail, life sciences, manufacturing, transportation, government, insurance, and business services sectors. The Company’s software is capable of correlating, in real-time, information about an organization’s operations and performance with information about expected behavior and business rules."

What We're Reading ~ Hedge Fund Links 10/10/14

Inside the biggest ever hedge fund scandal [New Yorker]

Elliott Management pushes EMC to spin off VMWare [ValueWalk]

Hedge fund dropped hints about its big short [Bloomberg View]

Carl Icahn's latest letter to Apple [Carl Icahn]

Perry Capital appeals dismissal over Fannie, Freddie [HedgeWorld]

Paulson feels pressure to reduce fees [WSJ]

Everest's Dimitrijevic on emerging and frontier markets [ii alpha]

50% Discount to Next Week's Family Office Capital Raising Workshop in NYC

On Friday October 17th at the Harvard Club of New York, fund managers, investor relations  professionals, and business executives will gather for a full-day intensive workshop on raising capital from family offices and HNW investors. http://WilsonConferences.com/Family-Capital

Richard C. Wilson, author of The Family Office Book (Wiley) and founder of the Family Offices   Group, will lead a day of live training that will teach you how to attract family offices and HNW investors, expand your capital base to single and multi-family offices, and educate you on the in’s and out’s of this growing investor group. Be sure and reserve your seat for the Alternative Investment Networking Breakfast taking place at the Harvard Club on October 16th, too.

Market Folly as a media partner for this event has enabled the first 10 professionals who register a 50% discount, so you can attend this catered, full-day capital raising seminar for $295. This offer is only for the first 10 readers who use this code "300" on the registration form: http://WilsonConferences.com/Family-Capital

Past Attendees of our Capital Raising and Networking Breakfasts include: BNP Paribas, Jefferies, Bloomberg, PWC, the Rohatyn Group, Credit Suisse, JPMorgan, First Republic, Goldman Sachs, Wells Fargo, Invesco, and leading family offices, private equity firms, and hedge funds.

Workshop Chairman: Richard C. Wilson has raised over $200 million, he is founder of the #1 largest family office association in the world, and is CEO of Wilson Holding Company and Billionaire Family Office. Richard is one of the best-known capital raising authorities in the world with over 20 million views of his articles, videos, white papers, webinars, and books, and a weekly email reach of over 1 million professionals, he has developed the Wilson brand into a household name over the past 8 years. Richard has written extensively on capital raising and marketing (including two bestselling books), he has trained over 10,000 investment professionals through his speeches, workshops, and training programs, and he works every day with ultra-wealthy investors, family offices, and $1B+ families.

Conference Details: http://WilsonConferences.com/Family-Capital

Where: Harvard Club of New York

Limited Seating: Due to fully catered breakfast and lunch at the event seating is strictly limited, please reserve your seat now if you would like to attend.

When: October 17, 2014

Why: In order to successfully raise capital from family offices, you need to understand these investors, how they make allocation decisions, and what they are seeking in an investment partner. This is the perfect workshop for anyone looking to partner with family offices and improve your institutional capital raising strategies. Download the brochure: http://WilsonConferences.com/Capital-Raising-Workshop-Series.pdf

Register: To reserve your seat before they run out please call Yvette or Doug at (212) 729-5067  or complete the 1 minute registration form here: http://WilsonConferences.com/Family-Capital and don’t forget to use code 300 to save $300 off your registration.

Like all of our events we 100% guarantee that you will love the workshop and get far more than your money's worth of value from it or we will refund you instantly upon request.

Richard C. Wilson
(212) 729-5067
Wilson Conferences
Family Offices Group Association
3300 NW 185th Avenue Suite #108
Portland, Oregon 97229
Team@WilsonConferences.com
http://WilsonConferences.com/Super

What We're Reading ~ Analytical Links 10/8/14

On avoiding value traps [Young Money]

Longs and investing from a short seller's perspective [LongShortTrader]

On buybacks: they are big and they are back [Aswath Damodaran]

A look at Adidas [Value & Opportunity]

An interview with Jack Schwager [Bloomberg View]

The world's greatest stockpicker? [Washington Post]

Wealth without workers, workers without wealth [Economist]

On Bond King Bill Gross' next act [Barrons]

How Visa is fighting back as transactions go digital [Bloomberg]

HP announces breakup plan [NYTimes]

Shorting GoPro is one pricey bet [WSJ]

Inside the Koch Brothers' empire [Rolling Stone]

Great Investors' Best Ideas Dallas 2014 Notes: Ackman, Einhorn, Perry & More

The 2014 edition of Great Investors Best Ideas Dallas took place this week benefiting the Michael J. Fox Foundation for Parkinson's Research and the Vickery Meadow Youth Development Foundation.


2014 GIBI Dallas Notes



Bill Ackman (Pershing Square):  He was positive on Fannie Mae and Freddie Mac (FNMA & FMCC), which have obviously seen volatility as of late.  They own 10% of each and are quite bullish.  They've been buying both and say private property can't be taken by the government.  Pershing owns common versus the preferred and think it's just as good of an investment.  Thinks there's an opportunity for settlement.


David Einhorn (Greenlight Capital):  He continues to like Micron (MU) and Apple (AAPL), and also really likes Greek banks.  AAPL/MU his 2 largest stakes.  Says DRAM has been a bad business for a while and should make $4 per share as the industry is only 3 players now after consolidation.  Likes Greek banks as they're at or below book value.  Also likes shorting French government bonds: Marine Le Pen wants to leave the Euro and bonds yield around 1%.


Richard Perry (Perry Capital):  Based on his pitch that was circulated a few months ago, Perry likes the idea of containerboard sponsored MLPs (they've owned International Paper (IP), KapStone Paper (KS), and Rock-Tenn (RKT)).  He also likes tax loss candidates of AIG (AIG) and Ally Financial (ALLY).  ALLY = Trading below book value but should trade 1x at least.  Government still owns 15%, last sold some @ $25, trades $22.50 now, should finish selling at year-end.  Also says Perry is appealing the Fannie/Freddie ruling and that this particular judge has been overturned a bunch.


T. Boone Pickens (BP Capital): He was positive on Marathon Oil (MRO) and Clean Energy (CLNE) again.  2 of his picks last year were up (FANG and BAS), except for CLNE which is down big.  He owns 20m shares, could be biased "pride of ownership".  Says he thinks we drill too much and US is only place that's growing production.  Likes MRO because it's cheaper on EV/EBITDA than peers like XOM and OXY.  Says we won't see $10 natural gas in his lifetime.


Michael Price (MFP Investors): 2 ideas (1 old, 1 new): Still likes Dolby (DLB, old idea).  55% of the company is owned by kids of the company.  PC sales dropped but have recovered.  Company can see new growth in India/China.  Undervalued stock, attractive to private equity and Apple.  Also likes FMC Corp (FMC), new idea.  Stock whacked on overreaction that company won't be splitting into two parts.  Thinks it trades $120 or so in next few years.


Tom Russo (Gardner Russo & Gardner): They like family controlled businesses.  Look for 50 cent dollars.  Focuses on global consumer stocks.  He was positive on Cie Financiere Richemont SA.


Paul Isaac (Arbiter Partners):  He likes Credit Agricole Regional Banks.  CMO, CRTO, CCN, CAF, CIV, CRSU.  40% price to tangible book value.  Well capitalized and inexpensive on relative basis.  Shorted French 10 yr bonds to hedge as there is euro risk.  Also pitched Japanese General Trading Companies.  8001.JP, 8002.JP, 8031.JP, etc.  Some 70% tangible book value, trading 6x PE.


Bill Miller (LMM): Buy the homebuilders as he likes the sector in general.  Specifically mentioned KB Homes (KBH), Lennar (LEN) and Pulte (PHM).  Market at new highs yet builders aren't even though they've got a nice clean path for earnings growth.  Says employment is the key and housing starts are improving.  He also said he likes Intrexon (XON).   This is a bet on management, who owns a huge chunk of the company.  Big upside but also could lose half your investment.


Ray Nixon (Barrow Hanley Mewhinney & Strauss):  He's positive on Q4 tax loss candidates, noting that many mutual funds end fiscally in October so there's various pressures that month, not to mention that it's one of the worst months historically.  Recommends buying across October, November and into December.  Buy a basket of tax loss names.  Pitched Mattel (MAT):  Stock's down over 30%, losing Disney license in 2016, losing shelf space, missed the past 3 quarters.  He says toy industry is growing 5%, likes the dividend yield, and points to $1b in cash on balance sheet.  They've started buying shares.

Ackman's Pershing Square Acquires More Platform Specialty Products

Bill Ackman's hedge fund firm Pershing Square Capital Management has filed a 13D on shares of Platform Specialty Products (PAH).  Per the filing, Pershing now owns 26.4% of the company with over 42.7 million shares.

This means Ackman has purchased over 9.4 million PAH shares since the end of the second quarter.  The filing was made due to activity on October 3rd.

Per Yahoo Finance, "Platform Specialty Products Corporation develops, produces, and markets a range of specialty chemical and printing products in the Americas, Asia, and Europe."

Invest For Kids Chicago Next Month: Ackman, Robbins, Kuhn, McGuire & More

The sixth annual Invest For Kids Chicago is coming up next month.  This Investable Ideas Conference benefits local children and features a heavy hitting line-up of top hedge fund speakers.  You can learn more about the conference and register here.

This year's event benefits Chicago Scholars, Intrinsic Schools, LEARN Charter School Network, North Chicago Community Partners, OneGoal, and Reading in Motion.  The co-founders of the event underwrite all the costs so 100% of the money raised goes directly to charity.


Event Details

Date: November 6th, 2014
Location: Harris Theater, Chicago, IL
Time: 1:30 - 5:30 pm


Speakers List

- Bill Ackman, Pershing Square
- Larry Robbins, Glenview Capital
- Steve Kuhn, Pine River Capital
- Mick McGuire, Marcato Capital
- Michael Sacks, Grosvenor Capital
- Wally Weitz, Weitz Investment Management
- Nehal Chopra, Tiger Ratan
- Mason Hawkins, Southeastern Asset Management
- Sam Zell, Equity Group Management
- Jonathan Kolatch, Redwood Capital
- Mike Wilkins, Kingford Capital
- Tim Hurd, BlueSpruce Investments
- Nancy Prial, Essex Investment Management


As you can see, some top hedge fund managers will be sharing their latest investment ideas. If you're in the Midwest, you don't want to miss it.

Last year's event had over 1000 attendees and raised almost $1.4 million for charities.  To attend Invest For Kids next month, simply click here to register.

Luxor Capital Adds To Conn's Position

Hedge fund firm Luxor Capital filed a 13D with the SEC regarding their position in Conn's (CONN).  Per the filing, Luxor now owns 20.9% of the company with over 7.58 million shares. 

This means they've boosted their position size by over 4.64 million shares since the end of the second quarter.

Their 13D contains the standard boilerplate that they don't have any plans currently but may engage with management.  The filing was made due to activity on September 29th.

Conn's recently announced it is exploring strategic alternatives.  They're entertaining ideas such as separating its retail and credit businesses, slowing store openings and returning capital to investors, or selling the company.

David Einhorn's Greenlight Capital was also a top shareholder of the company as of the end of Q2.

Per Google Finance, Conn's is " is a specialty retailer of durable consumer products, and it also provides consumer credit to support its customers’ purchases of the products that it offer. The Company derives revenue primarily from two sources: retail sales and delivery of consumer electronics, home appliances, furniture and mattresses, lawn and garden equipment and repair service agreements, and its in-house consumer credit program, including sales of related credit insurance products. Through its in-house consumer credit programs, it provides financing. In addition, it offers third-party payment options through GE Capital, for customers with high credit scores, and RAC Acceptance, a rent-to-own payment plan for customers that do not qualify for the other options it offer."

Kyle Bass' Hayman Capital Ramps Up Energy XXI Stake

Kyle Bass' hedge fund firm Hayman Capital has filed a 13G with the SEC regarding their stake in Energy XXI (EXXI).  The first filing shows that Hayman now owns 5.08% of the company with over 4.77 million shares.

This marks an increase of 1.77 million shares since the end of the second quarter.  The filing was made due to activity on September 30th.

Per Google Finance, Energy XXI is "an independent oil and natural gas exploration and production company with operations focused in the United States Gulf Coast and the Gulf of Mexico. The Company is engaged in the acquisition, exploration, development and operation of oil and natural gas properties onshore in Louisiana and Texas and offshore in the Gulf of Mexico."

ValueAct Capital Adds To Allison Transmission Holdings

Jeff Ubben's activist hedge fund firm ValueAct Capital has filed a Form 4 with the SEC regarding their stake in Allison Transmission (ALSN).  Per the filing, ValueAct has upped its stake due to portfolio activity in the first three days of October.

ValueAct bought a total of 550,000 shares at prices ranging from $28.07 to $28.43.  After these purchases, Ubben's firm now owns over 18.575 million shares of Allison Transmission.

ALSN was analyzed in the most recent issue of our Hedge Fund Wisdom newsletter.  Catch up on the investment thesis quickly by signing up to see why ValueAct is attracted to it.

Pennant Capital Raises Ocwen Financial Stake

Alan Fournier's hedge fund firm Pennant Capital has filed a 13G with the SEC on their position in Ocwen Financial (OCN).  Per the filing, Pennant now owns 7.2% of the company with over 9.44 million shares.

This means they've boosted their position size by 4 million shares since the end of the second quarter.  Shares of OCN have been under extreme pressure as regulators scrutinize the non-bank servicers.  They're seeking to beef up compliance and have previously halted OCN's purchase of mortgage servicing rights (MSRs).

The filing was made due to activity on September 22nd. 

Per Google Finance, Ocwen Financial is "a financial services holding company. The Company is engaged in the servicing and origination of mortgage loans. The Company's Shared Appreciation Modification (SAM) incorporates principal reductions and lower payments for borrowers while providing a net present value positive loss mitigation outcome for investors, including the ability to recoup losses if property values increase over time."

Fairholme Capital Purchases Participation Interest in Sears Short-Term Loan

Bruce Berkowitz's Fairholme Capital has filed an amended 13D with the SEC regarding their position in Sears Holdings (SHLD).  Per the filing, Fairholme now owns 23.1% of the company with 24.64 million shares.

Berkowitz has now bought an additional 49,200 shares since his last amended 13D disclosure recently.

More importantly though, the filing notes that Berkowitz has participated in Sears' short-term loan.  The 13D indicates that:

"On September 30, 2014, The Fairholme Partnership, LP (the "Partnership"), a private fund affiliated with the Reporting Persons, purchased a 6.25% participation interest in the Short-Term Loan from entities affiliated with ESL Investments, Inc. pursuant to that certain Amended and Restated Participation Agreement, dated September 30, 2014, by and among PYOF 2014 Loans, LLC, the Partnership and affiliates of the ESL Investments, Inc. (the "A&R Participation Agreement")."

What We're Reading ~ Hedge Fund Links 10/3/14

Profile of Canyon Capital [Institutional Investor]

Perry Capital appeals Fannie, Freddie dismissal [FINalternatives]

Relational Investors plans to wind down [WSJ]

Goldman takes stake in Caxton [Reuters]

Hedge fund managers to increasingly defer performance fee pay-outs [COO Connect]

Short seller Chanos targets China's casino industry [Newsweek]

Complex and expensive but hedge funds can benefit us all [Telegraph]

Carol Loomis' 1970 piece: hard times come to hedge funds [AWJones]

Looking at the next generation of institutional investing [All About Alpha]

David Tepper's Latest Thoughts: Bloomberg Interview

Appaloosa Management's David Tepper sat down with Bloomberg TV today to discuss the upcoming Robin Hood Investors Conference that fights poverty in New York and to share some of his latest market thoughts.  Here are the highlights:


David Tepper's Bloomberg Interview


On his bet against bonds:  "They (ECB) haven't done any QE yet. So let them start some QE. But the beginning of the end was basically saying that when you create inflation and some inflation in the eurozone, then the bond market is going to start going down. If you don't create inflation in the eurozone of some sort or you don't stop the deflation, then that might not happen. But I do think that if they go in action, if they get in action, if they really get in action you will start creating inflation at some point in time. Until you do that, things will go where they go. And you can look at the curves over there."

On how the saying used to be "don't fight the Fed" and now it's "don't fight Draghi": "Yeah, I think that's probably right to a certain extent. I don't think you want to fight it, but you've got to understand what it's going to mean. So the extent that if he's really in action then you don't want to fight him, but he has to really get in action. You have to start QE. This negative interest rates doesn't necessarily have the effect of creating money. It doesn't necessarily have the effect of creating inflation. So if you want to do that, do that. But right now he's done nothing. So let him start."

On the US equity market multiple:  "Well I don't think it's high because if you – if you believe interest rates are 4 or 4.5 percent, 16.5 seems like about the right multiple. But I don't think we're at the 4.5 percent 10-years. We're at 2.5 percent 10-years or unfortunately 2.43 or something like that right now. And next year at 14 –"

On Fannie/Freddie:  "I wish I didn't have any investment.  And we're just – we're going to do a little bit more research and see where we stand in different courts. There's – it's – there's appeal processes for different lawsuits, so you’re not done with this particular court. You also have other courts that you’re involved in. I forget the name. The court of settlement claims or something like that.   So you have different places, different venues to – to – that you haven't brought a case yet, and also you can appeal this last decision. So I think that will go on. And then you want to see what happened exactly in this – in this judge's opinion right here. So you have to do some analysis right now to see where the securities are (inaudible) down a lot. Are they value now? Are they buy, sell, hold? That's what you have to do, reevaluate (inaudible)."

Tepper's thoughts on equities: "Well I kind of told you. Listen, it's – it's interesting on a multiple basis and – but you have to have certain things happening. You’ve got to have Europe stop – stop the nonsense, so to speak, Draghi stop the nonsense. So that's kind of it."


Embedded below is the video of Tepper's Bloomberg Television interview:



For more from Tepper, head to his call for the beginning of the end of the bond market bubble.

What We're Reading ~ Analytical Links 10/1/14

Do valuation shorts work? [CFA] 

Importance of ROIC: the math of compounding [Base Hit Investing]

The great American deleveraging continues [Yahoo]

The end of monetary policy [Forbes]

'Stock Market Wizards' take losses [Dasan]

Profile of Mohnish Pabrai [Forbes]

On China's economy: a test of will [Economist]

eBay does about-face in spinoff of PayPal [Dealbook]

On Apple Pay's eCommerce disruption [Starpoint]

Bullish piece on Bank of America [Barrons]

US poised to become world's leading liquid petroleum producer [FT]

Mystery man who moves Japanese markets [Bloomberg]

An investor's guide to better writing [imausa]

Citadel Adds To Acxiom Stake

Ken Griffin's Citadel has filed a 13G with the SEC regarding their position in Acxiom (ACXM).  Per the filing, Citadel now owns 5.1% of the company with over 4 million shares.

They've boosted their position size by over 2.7 million shares since the end of the second quarter.  The filing was required due to activity on September 25th.  ACXM shares have plummeted from $39 earlier this year down to current levels around $16.

Per Google Finance, Acxiom is "an enterprise data, analytics and software-as-a-service company. The Company operates in three segments: Marketing and Data Services, IT Infrastructure Management, and Other Services. The Marketing and Data Services segment includes its global lines of business for customer data integration, consumer insight solutions, marketing management services, and consulting and agency services. The IT Infrastructure Management segment develops and delivers information technology (IT) outsourcing and transformational solutions. The Other Services segment includes the e-mail fulfillment business, the United States risk business, and the United Kingdom fulfillment business. In July 2014, the Company acquired LiveRamp, Inc., a service for onboarding customer data into digital marketing applications."

Lone Pine Capital Boosts Tiffany Stake

Steve Mandel's hedge fund firm Lone Pine Capital has filed a 13G with the SEC regarding their position in Tiffany & Co (TIF).  Per the filing, Lone Pine now owns 5.3% of the company with over 6.85 million shares.

This means they've boosted their stake by over 2.61 million shares since the end of the second quarter.  The filing was made due to activity on September 18th.

You can view additional recent portfolio activity from Lone Pine here.

Per Google Finance, Tiffany's is "a holding company that operates through its subsidiary companies. The Company operates in five segments: Americas, Asia-Pacific, Japan, Europe and other. The Company's principal product category is jewelry, which represented 92% of worldwide net sales during the fiscal year ended January 31, 2014."

Eton Park Capital Increases Riverbed Technology Position

Eric Mindich's hedge fund firm Eton Park Capital has filed a 13G with the SEC regarding their position in Riverbed Technology (RVBD).  Per the filing, Eton Park now owns 5.63% of the company with 9 million shares.

This means they've increased their position size by over 6 million shares since the end of the second quarter.  The filing was made due to activity on September 18th.

Per Google Finance, Riverbed Technology "has developed solutions to the fundamental problems associated with information technology (IT) performance across wide area networks (WANs). Riverbed’s family of performance products include solutions for branch offices, mobile workers, private data centers, private clouds and cloud computing. The Company’s products include Steelhead products and Cascade product line."

Bruce Berkowitz's Wealthtrack Interview: AIG, BAC, FNMA

Consuelo Mack's Wealthtrack recently sat down with Fairholme Capital's Bruce Berkowitz to talk about his investments.  These days, he manages around $8 billion and his largest holding continues to be AIG (AIG).

He says he's still focused on financials because that's what he knows and what's in his circle of competence.  The main thing he's drawn to is the huge stature of some of the companies he's invested in.  He likes systemically important institutions (such as AIG and Bank of America).


On AIG

Berkowitz notes that AIG's tangible book value is around $75 and he's waiting for the company to trade around book value.  He says he has to keep trimming the position slightly because as the price increases, it becomes an even larger part of his portfolio (and it's already almost 50% of his portfolio).


On Bank of America

He bought Bank of America (BAC) because he felt it would eventually become more like a bank like Wells Fargo after restructuring and settling litigation.  As it still sells below book or runoff value, he says he's getting the "future for free and a discount on the books."


Fannie/Freddie

He compares this situation to AIG in that it's a very important organization where the government is involved.


Curiously absent from the discussion was another of Berkowitz's holdings: Sears.  Shares have declined recently and Berkowitz has been interested in participating in the company's short-term loan.


Embedded below is the video of Berkowitz's interview with Wealthtrack:

Sohn Conference San Francisco 2014: Ubben, Billick, McGuire & Moore

Today we're pleased to announce that the 2014 Sohn San Francisco Conference will be taking place next month.  The event features top hedge fund managers sharing investment ideas to benefit various charities.  You can register for the conference via this link.

Conference proceeds benefit the Sohn Conference Foundation, as well as Bay Area organizations focused on improving educational opportunities and life outcomes for underserved youth. This year's beneficiary group includes:  City Year San Jose/Silicon Valley, First Place for Youth,  Leadership Public Schools, Pathways for Kids and SEO Scholars San Francisco.

Here are the conference details:


Date, Time & Location

- Date: Wednesday, October 29th, 2014
- Time: 2:30 - 6:00 pm; general networking reception to follow
- Location: The Bently Reserve, 301 Battery Street, San Francisco, CA 94111


Speakers List

Jeffrey Ubben, Founder, CEO & CIO, ValueAct Capital

Kurt Billick, Founder and Chief Investment Officer, Bocage Capital
Mick McGuire, Founder & Managing Member, Marcato
Meridee Moore, Chief Investment Officer, Watershed Asset Management LLC
Sandy J. Colen, Manager & CIO, Apex Capital
Brian Zied, Founder & Portfolio Manager, Charter Bridge Capital Management, L.P.
Scott Fearon, President, Crown Capital Management
Mick Hellman, Founder & Managing Partner, HMI Capital LLC
Carl Kawaja, Portfolio Manager, Capital World Investors
Jose Medeiros, Co-Founder, Stonerise Capital Partners
Jeffrey Osher, Managing Director, Harvest Capital Strategies, LLC


Registration Flyer

Embedded below is the event flyer:





You can register for the event at the conference website here.  Support some great causes while hearing from of the brightest in the investment industry at the 2014 Sohn San Francisco Conference.

What We're Reading ~ Hedge Fund Links 9/26/14

Are hedge funds losing their appeal? [Institutional Investor]

SEC finds deficiencies at hedge funds [WSJ]

On hedge fund crowding [Alpha Beta Works]

Julian Robertson: bond bubble to end in 'very bad way' [Bloomberg]

Is that hedge fund really worth it? [Los Altos]

Hedge funds are still finding love, just not at Calpers [Dealbook]

Paulson pushed for Family Dollar sale as passive investor [Bloomberg]

Capitalising on the surge in hedge fund start-ups [COO Connect]

Financial elite's offspring start their own hedge funds [WSJ]

Spanish fund manager Parames said to leave Bestinver [BusinessWeek]

Tiger Global raising another huge venture fund [Fortune]

Merger arb: getting your stick to where the puck will be [All About Alpha]

Intel's use of hedge funds: another perspective [Cordant]

Warren Buffett Interview With Dan Gilbert

Berkshire Hathaway's Warren Buffett recently sat down for an interview with Dan Gilbert.  Below are the videos of their chat.

Video 1




Video 2



For more investing guru wisdom, check out recent notes from Charlie Munger's Daily Journal meeting as well.

Bruce Berkowitz Looking to Participate in Sears Short-Term Loan

Bruce Berkowitz's investment firm Fairholme Capital has filed an amended 13D on shares of Sears Holdings (SHLD).  We previously highlighted how Berkowitz bought more SHLD recently.

His previous filing noted that St. Joe (JOE) was in discussions to possibly participate in Sears' $400 million secured short-term loan.  Per the new filing, that fell through.

However, the new 13D indicates that Fairholme is in discussions concerning a "substantially smaller participation in the short-term loan."

It also appears as though Fairholme has sold 26,400 SHLD shares since his previous 13D filing only last week.

JAT Capital Boosts Madison Square Garden Stake Again

John Thaler's hedge fund firm JAT Capital has filed an amended 13D with the SEC regarding their position in Madison Square Garden (MSG).  Per the filing, JAT now owns 9.36% of the company with over 5.95 million shares.

This marks an increase of over 1 million shares since the last time JAT increased its MSG stake last month.  The latest filing was made due to the bulk of activity on September 18th where they bought MSG at $66.10

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."

What We're Reading ~ Analytical Links 9/24/14

The fulcrum security: what it is and why it matters [Third Avenue]

Jack Ma on Alibaba, entrepreneurs [Dealbook]

Stock buybacks: breaking the habit [Barrons]

The real reason Yahoo is so cheap [MicroFundy]

Beware the yield co [FT Alphaville]

Down but not out: iron ore miners still profitable in spite of lower prices [Economist]

The new population boom could easily be a dud [WSJ]

Why Amazon has no profits (and why it works) [Andreessen Horowitz]

US Treasury moves against tax-avoidance inversion deals [Reuters]

Mike Pearson's new prescription for the pharmaceuticals industry [Institutional Investor]

What 'big food' does with organic and natural [Fortune]

Warren Buffett's wrath: how Benjamin Moore almost broke his promise [Fortune]

29 charts that explain Americans' financial lives [Vox]

Only 49% of Americans have any money in stocks at all [CNN]

The end of consoles as we know it [alistdaily]

Institutional investor portfolio allocation, quantitative easing & the financial crisis [Bank of England]

Oaktree Capital Discloses Molycorp Stake

Howard Marks' investment firm Oaktree Capital has filed a 13G with the SEC regarding shares of Molycorp (MCP).  Oaktree now owns 9.1% of the company with over 24.47 million shares.

This is a newly disclosed stake and the filing was required due to activity on September 11th.  The filing notes that the shares beneficially owned are a result of direct ownership of 18,358,019 penny warrants and 6,119,340 Oaktree Warrants which are defined in the filing here.

If you haven't already, be sure to check out Howard Marks' book: The Most Important Thing.

Per Google Finance, Molycorp is "provides Rare Earths and Molybdenum products to companies. The Company's rare earth products comprise of bastnasite, cerium, europium, lanthanum, neodymium, praseodymium, yttrium, and other lanthanides."

Bruce Berkowitz's Fairholme Buys Sears Shares

Bruce Berkowitz's firm Fairholme Capital just filed a 13D with the SEC regarding shares of Sears Holdings (SHLD).  Per the filing, Fairholme now owns 24% of SHLD with over 25 million shares.

This means Berkowitz has added to his position size by over 850k shares since the end of the second quarter.  He's been a long-term Sears shareholder and shares have nosedived from $45 earlier in the year down to current levels of under $27.

The vast majority of this decline has been in recent days as news came out that the company was borrowing $400 million from its CEO Eddie Lampert's hedge fund (ESL Investments).  This has prodded fears that the company could eventually be in trouble.

Berkowitz was buying in early September around $32.28 but then ramped up purchases on September 5th and 8th around $33.21. It will be interesting to see if he ramps up his purchases even further now that shares are even lower.

Fairholme's filing also notes that one of their other investments is potentially involved here: St. Joe (JOE).  The filing indicates that, "The St. Joe Company, an affiliate of the Fund and Fairholme, is in discussions with the Issuer regarding the $400 million secured short-term loan disclosed on the 8-K filed by the Issuer on September 15, 2014.  The St. Joe Company may invest up to $100 million in participations relating to theShort Term Loan."

Berkowitz's 13D filing didn't note any other plans or proposals at this time.


Per Google Finance, Sears Holdings is "is a retailer with 2,172 full-line and 1,338 specialty retail stores in the United States operating through Kmart Holding Corporation (Kmart) and Sears, Roebuck and Co. (Sears) and 500 full-line and specialty retail stores in Canada operating through Sears Canada Inc. (Sears Canada), a 95%-owned subsidiary. The Company operates in three segments: Kmart, Sears Domestic and Sears Canada."

What We're Reading ~ Hedge Fund Links 9/19/14

Brevan Howard's Charlotte Valeur talks strategy [FINalternatives]

Seth Klarman cautions against complacency bubble [ValueWalk]

Picking hedge funds is hard [Abnormal Returns]

Highland Capital on whether the bull market in US airlines will continue [Harvest]

Don't forget the 'hedge' in hedge fund [First Adopter]

The beginning of the end of the hedge fund gravy train [Abnormal Returns]

Profile of ValueAct / Jeff Ubben [Fortune]

The (obscene) cost of hedge funds [FT Alphaville]

Trian makes case to split up DuPont [WSJ]

Tiger Ratan's Chopra stumbles in rise to top [Bloomberg]

Hedge fund's equity titans come unstuck in Europe [eFinancial News]

Activist investors build up their war chests [WSJ]

Alibaba gets interest from Tepper, Loeb, Cooperman [CNBC]

Oaktree fund betting big on economic downturn [CNBC]

Puerto Rico finds it has new friends in hedge funds [Dealbook]

Most hedge fund managers are overpaid [Bloomberg]

CFTC eases hedge fund advertising ban [WSJ]