Corvex Management Increases ARCP Stake, Writes Letter to Board

Keith Meister's hedge fund firm Corvex Management has filed an amended 13D with the SEC regarding their position in American Realty Capital (ARCP).  They now own 7.8% of the company with exposure to over 70.6 million shares.

This is an increase of over 5.9 million shares since Corvex first reported its ARCP stake in December.  They acquired call options and common stock in late December/early January and sold put options as well.

The activist filing also includes an open letter that Corvex has written to the board of ARCP and to candidates for Chairman and CEO.  You can read the full letter here.

Per Google Finance, American Realty Capital is "a real estate investment trust (REIT). The Company owns and acquires single-tenant, freestanding commercial real estate primarily subject to medium-term net leases with credit quality tenants." 

Phil Hempleman's Ardsley Partners Adds To Bioscrip

Phil Hempleman's hedge fund firm Ardsley Partners has filed a 13G with the SEC regarding their position in Bioscrip (BIOS).  Per the filing, Ardsley now owns 5.1% of the company with over 3.53 million shares.

They've increased their position size by over 1.9 million shares since the end of the third quarter.  The filing was made due to activity on January 29th.

Hempleman founded Ardsley in 1987 and is a long/short equity focused fund that uses bottom-up stockpicking to build its portfolio.  We've covered other portfolio activity from Ardsley here.

Per Google Finance, Bioscrip is "provides home infusion and other home healthcare services. The Company’s services are designed to improve clinical outcomes for patients with chronic and acute healthcare conditions while controlling overall healthcare costs. The Company’s platform provides nationwide service capabilities and the ability to deliver clinical management services that offer patients a high-touch, home-based and community-based care environment. Its core services are provided in coordination with, and under the direction of the patients' physicians."

JANA Partners Completely Exits PetSmart

After going activist on PetSmart (PETM), Barry Rosenstein's hedge fund JANA Partners got the company sold and has been trimming its exposure to the stock since.  Now, in their latest 13D filing with the SEC, we see that JANA has completely exited PetSmart shares.  The filing was made due to activity on February 5th.

As the stock has effectively traded sideways as a risk arbitrage play, one possible explanation is that JANA didn't want to sit around and wait to capture a tiny spread and instead saw more attractive uses for that capital.

PetSmart is set to be acquired by BC Partners in an $8.7 billion deal.

Per Google Finance, PetSmart "supplies products, services and solutions for the lifetime needs of pets. The Company operates a website for pet supplies, foods and different animal needs. The Company's stores also feature pet styling salons that offer pet grooming services, from full-service styling to baths, toenail trimming and teeth cleaning."

Makaira Partners Increases Wesco Aircraft Stake

Tom Bancroft's hedge fund firm Makaira Partners has filed a 13G with the SEC regarding their position in Wesco Aircraft Holdings (WAIR).  Per the filing, Makaira now owns 7.5% of the company with over 7.37 million shares.

This is an increase of over 1.62 million shares since the end of the third quarter.  The filing was made due to portfolio activity on December 31st.  Wesco was already their top holding and they've further increased their stake.

If you're unfamiliar with Makaira, manager Tom Bancroft was listed as one of the people Todd Combs of Berkshire Hathaway would choose when asked who else he would hire.  The other two names were Lou Simpson and Meryl Witmer.   Makaira runs a smaller portfolio, with 10 stocks listed in their Q3 2014 13F filing. 

Per Google Finance, Wesco Aircraft "formerly Wesco Holdings, Inc., a holding company for Wesco Aircraft Hardware Corp. The Company is a distributor and provider of supply chain management services to the global aerospace industry. Its services range from traditional distribution to the management of supplier relationships, quality assurance, kitting, just-in-time (JIT), delivery and point-of-use inventory management."

Third Point Q4 Letter: New Position in Fanuc

Dan Loeb's hedge fund Third Point is out with their fourth quarter letter to investors.  They reveal their thesis on a new long position in Fanuc and touch on their pre-existing long Amgen (AMGN).  Additionally, they highlight general market thoughts and take another look at the situation in Greece.

They've lowered gross and net exposures this year, but are looking to "add exposure during market dislocations."  Their letter notes they're investing in various large cap companies where they can engage with constructive talks with management about improving shareholder value.

Embedded below is Third Point's full Q4 2014 letter:



For more from this manager, be sure to check out Dan Loeb's recommended reading list.

Balyasny Asset Management Starts Peabody Energy Position

Dmitry Balyasny's hedge fund firm Balyasny Asset Management has filed a 13G with the SEC regarding shares of Peabody Energy (BTU).   Per the filing, Balyasny now owns 5.17% of the company with over 14 million shares.

This is a newly disclosed equity position for the firm as they did not own a position at the end of the third quarter.  The filing was made due to activity on January 30th.

Per Google Finance, Peabody Energy "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."

You can view more recent portfolio activity from Balyasny Asset Management here.

Cantillon Capital Exits The Brink's Company Stake

William von Mueffling's investment firm Cantillon Capital has filed a 13G with the SEC regarding shares of The Brink's Company (BCO).  Per the filing, Cantillon no longer holds any shares.

The filing was made due to activity on December 31st.  Previously, they held over 3 million shares of BCO.

Cantillon used to be a hedge fund, but in around five years ago morphed into a long-only firm.  To learn more about this manager, head to von Mueffling's interview with Columbia Business School.

Per Google Finance, The Brinks Company is "a provider of secure logistics and security solutions services ATM replenishment and maintenance, secure international transportation of valuables and cash management services, to financial institutions, retailers, government agencies including central banks, mints, jewelers and other commercial operations around the world. The Company operates in four geographic segments: Latin America; Europe, Middle East, and Africa (EMEA); Asia Pacific, and North America."

Alex Denner's Sarissa Capital Starts Aegerion Pharmaceuticals Stake

Alex Denner's hedge fund firm Sarissa Capital has filed a 13D with the SEC regarding shares of Aegerion Pharmaceuticals (AEGR).  Per the filing, Sarissa now owns 5.76% of the company with over 1.63 million shares.

Prior to founding Sarissa, Denner worked with Carl Icahn and before that was at Viking Global.  Sarissa's focus is the healthcare/biopharma space.

This is a newly disclosed position as Sarissa did not own any AEGR shares at the end of the third quarter.  The disclosure was made due to portfolio activity on January 30th.  They were out buying primarily in the $23-24 range between January 14th and February 4th.

The activist 13D filing notes that Sarissa intends to engage in discussions with management and has the standard boilerplate under the "purpose of transaction" section.

Per Google Finance, Aegerion Pharmaceuticals is "a biopharmaceutical company dedicated to the development and commercialization of innovative therapies for patients with debilitating rare diseases. The Company’s first product, lomitapide, received marketing approval, under the brand name Juxtapid capsules, from the United States Food and Drug Administration as an adjunct to a low-fat diet and other lipid-lowering treatments in adult patients with homozygous familial hypercholesterolemia (HoFH)."

What We're Reading ~ Hedge Fund Links 2/6/14

Summary of hedge fund stock picks at the Breakers conference [CNBC]

Hedge funds making profits using freedom of information act requests [ValueWalk]

Hedge fund manager Odey turns super bear on QE [WSJ]

Reinsurance, hedge fund tax 'loophole' rule set for the spring [RiskMarketNews]

Ackman to invest in Clearfield Capital hedge fund [Reuters]

Girls who invest would change Wall Street [Bloomberg View]

Tips for successfully marketing a hedge fund [FINalternatives]

Big money looking for smart plays on energy [CNBC]

Pickens' hedge fund to trade on oil panic in fundraise [Bloomberg]

Why invest in hedge funds if they don't outperform? [Forbes]

Short Selling: Cleaning Up After Elephants By Guy Judkowski

Guy Judkowski, managing member of Waterloo International Advisors, LLC, has authored a piece entitled, Short Selling: Cleaning Up After Elephants, An Investor's Guide to Wall Street's Toughest Job.  He released it on his website here.

He co-managed a short-biased hedge fund for 13 years and has published short sell reports for over 20 years.  His piece looks at numerous case studies including Fruit of the Loom (FTL), Alpharma (ALO), Fossil (FOSL), American Italian Pasta (AIPC), Serologicals (SERO), Orthodontic Centers of America (OCA), Safeskin (SFSK).

Additionally, he highlights certain metrics and patterns to look for in shorts. 

Embedded below is the short selling guide, Cleaning Up After Elephants:



You can download the .pdf here.

Viking Global Boosts Cheniere Energy, Kansas City Southern Stakes

Andreas Halvorsen's hedge fund firm Viking Global has filed two 13G's with the SEC regarding some of their existing positions.


Viking Adds to Cheniere Energy Stake

First, Viking has revealed a 6.5% ownership stake in Cheniere Energy (LNG) with over 15.3 million shares.

This marks an increase of over 9.9 million shares in their position size since the end of the third quarter.  The filing was made due to portfolio activity on January 26th.

Per Google Finance, Cheniere Energy is "engaged in liquid natural gas LNG-related businesses. The Company owns and operates the Sabine Pass LNG terminal in Louisiana through its 59.5% ownership interest in and management agreements with Cheniere Energy Partners, L.P. The Company also also own and operate the Creole Trail Pipeline, which interconnects the Sabine Pass LNG terminal with natural gas markets in North America."


Increases Kansas City Southern Position

Second, Halvorsen's firm has also disclosed a 5% ownership stake in Kansas City Southern (KSU) with over 5.56 million shares.

They've boosted their position size by over 1.3 million shares since the end of the third quarter.  This activity was reported due to activity on January 27th.

Per Google Finance, Kansas City Southern is "a transportation holding company with domestic and international rail operations in North America that are strategically focused on the growing north/south freight corridor connecting key commercial and industrial markets in the central United States with industrial cities in Mexico."

You can view other recent portfolio activity from Viking here.

What We're Reading ~ Analytical Links 2/4/15

Dead companies walking: How a hedge fund manager finds opportunity [Scott Fearon]

Seth Klarman on what he's learned from Warren Buffett [FT]

On mindfulness, meditation and investing [Abnormal Returns]

The future of iron ore [Joe Magyer]

FCC Chairman: this is how we will ensure net neutrality [Wired]

Monetary policy: the great illusion [CapX]

Inside the studio where ESPN is betting billions on the future of sports [The Verge]

On Disney's Bob Iger and Apple's Steve Jobs [Fortune]

Here's why Netflix stock is so volatile [MicroFundy]

How Berkshire can survive beyond Warren Buffett [Stanford]

Study says 'boring' stocks generate better returns [Marketwatch]

On Keynes the stock market investor [SSRN]

Chipotle: the definitive oral history [Bloomberg]

The Chipotle effect: why America is obsessed with fast casual [Washington Post]

Inside RadioShack's slow motion collapse [Bloomberg]

Google is developing its own Uber competitor [Bloomberg]

On declining lethality [NYTimes]

Berkowitz's Fairholme Fund Annual Report: AIG, Bank of America, Fannie/Freddie

Bruce Berkowitz is out with his Fairholme Fund's (FAIRX) annual report for 2014.  The concentrated investor outlines his thoughts on AIG (AIG), Bank of America (BAC), Fannie Mae & Freddie Mac, Sears (SHLD), Leucadia (LUK), and St. Joe (JOE).

Berkowitz dedicates the majority of his letter to his Fannie & Freddie investments, saying that, "Today, Washington bureaucrats are unlawfully holding these profitable companies captive in perpetual conservatorship."

Regarding his two largest positions (AIG and BAC), Fairholme's manager says that both need to "prove that core operations are capable of earning an average of 10% return on equity and demonstrate that such profits are distributable to shareholders.  We anticipate growing profits, dividends, and buybacks from both in the future, particularly when interest rates normalize."

Embedded below is the Fairholme Fund's annual report for 2014:



For more from this manager, be sure to also check out Berkowitz's Wealthtrack interview.

Graham & Doddsville Interview With Bill Ackman & More

The latest issue of Graham & Doddsville is out.  This new edition of the student investment newsletter of Columbia Business School features interviews with Pershing Square's Bill Ackman, Corsair Capital's Jay Petschek and Steve Major, as well as Lyrical Asset Management's Andrew Wellington.

Additionally, the publication showcases student stock pitches on the likes of CDK Global (CDK), Schibsted Media (SCH:NO), JetBlue (JBLU), and First Solar (FSLR).


Highlights From Bill Ackman's Interview

On running a concentrated portfolio: "I'm a big believer in concentration.  But it's not just analysis that protects you, it's the nature of the things you invest in.  If you invest in super high quality, durable, simple, predictable, free cash flow generating businesses, that should protect you as well.  If you pay a fair to cheap price for businesses of that quality, I think it's hard to lose a lot of money.  The key is you have to be a good analyst in order to determine whether it truly is a great business.  You have to really understand what the moats are.  You have to understand the risk of technological entrants."

On position sizing:  "We size things based on how much we think we can make versus how much we think we can lose.  We'll probably be willing to lose 5-6% of our capital in any one investment."

On testing conviction: "One of the best ways to get confidence in an idea is to find a smart person who has the opposing view and listen to all of their arguments."


Embedded below is the latest issue of Graham & Doddsville:



You can download a .pdf copy here.

If you missed past issues of this great newsletter, be sure to also check out their interview with Maverick Capital's Lee Ainslie as well as their interview with Wally Weitz.

Final Chance to Attend Next Week's NY Single Family Office Summit

I just wanted to give you a quick reminder that there is only a week left before the Single Family Office Summit in New York on February 9th.

Market Folly has secured an extra 5 discounted tickets so you can attend this full-day conference for just $797 using the discount code "SFO" here: http://WilsonConferences.com/SFO or you can call (212) 729-5067 to complete your reservation over the phone.

See you at the Summit,

Richard

Richard C. Wilson
CEO & Founder
The Family Office Club: http://FamilyOffices.com
Live Conferences: http://WilsonConferences.com/SFO

The Art of Value Investing: Talks at Google Presentation

John Heins and Whitney Tilson published a book a while ago entitled The Art of Value Investing: How the World's Best Investors Beat the Market.  It's basically a compilation of great quotes from tons of prominent hedge fund managers about a variety of topics on investing.

Featured as part of the Talks at Google series, the two gentlemen gave a presentation at Google about the book, investing, and a look at Google stock as well.

Embedded below is the video of The Art of Value Investing at Talks at Google:



If you haven't read it, The Art of Value Investing is a great book full of wisdom from a ton of investors that have been featured on Market Folly over the years.

Lee Cooperman Trims SandRidge Energy & New Residential Stakes; Adds to THL Credit

Omega Advisors' Lee Cooperman has filed a myriad of amended 13G's with the SEC as of late.  We covered some of his recent portfolio activity here.  In other recent moves, Cooperman was out trimming 2 stakes, and adding to another.


Trims SandRidge Energy

First, Omega Advisors has reduced its position in SandRidge Energy (SD) by over 13.3 million shares since the end of the third quarter.  Per the 13G filed with the SEC, Cooperman now owns just over 32.1 million shares.  This was made due to activity on December 31st.

Per Google Finance, SandRidge Energy is "an oil and natural gas company. The Company focuses on exploration and production activities in the Mid-Continent region of the United States. The Company also operates businesses and infrastructure systems, including gas gathering and processing facilities, marketing operations, a saltwater disposal system, an electrical transmission system and a drilling rig and related oil field services business."


Cuts New Residential Stake

Next, the hedge fund manager also cut his exposure to New Residentail Investment Corp (NRZ).  After selling over 3.8 million shares, he's left owning over 7.97 million shares.  The filing was also made due to activity on December 31st.

Per Google Finance, New Residential Investment Corp is "a real estate investment trust. The Company focuses on investing in, and actively managing, investments related to residential real estate. The Company is managed by an affiliate of Fortress Investment Group LLC, a global investment management. The Company primarily target investments in excess mortgage servicing rights, residential mortgage backed securities, residential mortgage loans and other related investments."


Adds To THL Credit Position

Last, Cooperman also disclosed he has added to his THL Credit (TCRD) position.  After buying over 1.1 million more shares, he now owns over 2.11 million shares of the company.  The 13G was filed due to activity on December 31st.

Per Google Finance, THL Credit is "a non-diversified, closed-end management investment company. It operates as a business development company. The Company’s investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated debt and equity securities of middle market companies. The Company is a direct lender to middle market companies and invest in subordinated, or mezzanine, debt and second lien secured debt, which may include an associated equity component such as warrants, preferred stock or other similar securities."

Don't forget you can see the rest of Cooperman's recent portfolio activity here.

Paul Singer's Interview at the Dealbook Conference

If you missed it, Elliott Management's Paul Singer sat down with Andrew Ross Sorkin at the Dealbook Conference a few months ago to talk about the global investment landscape.

Embedded below is the video of Paul Singer's talk:

Discounted Admission to February's Single Family Office Summit in NYC

By: Richard Wilson

Hello,

Next month, family offices will gather in Manhattan for the Annual Single Family Office Summit on February 9th.  Market Folly has secured 5 special discounted tickets to attend the full-day catered conference for only $797.  To claim one of these discounted seats, simply enter the discount code "SFO" on the order form here: http://WilsonConferences.com/SFO

The Single Family Office Summit is held at the Marriott East Side on February 9th and features more than a dozen single family offices speaking on the most important topics of wealth management, allocation decisions, and institutional investing.  If you want to look through the brochure you can do so here: http://WilsonConferences.com/SFO-Brochure

Who will be attending?

This event attracts institutional investors, family office executives, private equity dealmakers, investment fund managers, high-net-worth individuals, and a variety of family office industry advisors.  The conference combines live networking with a variety of insightful panels and presentations on issues facing single family offices and family advisors.

Why should you attend?

The Single Family Office Summit is your annual opportunity to meet face-to-face with family offices, network with peers that are working in the family office industry, gain valuable insights on the market and allocation strategies, and build real relationships that move the needle in your business or family office.  The single most common feedback from attendees is "I should have brought more business cards" because the Single Family Office Summit places an emphasis on actually meeting your fellow attendees and speakers.

Ready to Register?

Market Folly has just 5 special $797 discounted tickets to be sure to claim your seat today with the discount code "SFO" to take advantage of this offer: http://WilsonConferences.com/SFO or you can call (212) 729-5067 to complete your reservation over the phone.

Richard

Richard C. Wilson
CEO & Founder
The Family Office Club: http://FamilyOffices.com
Live Conferences: http://WilsonConferences.com/SFO

Farallon Capital Discloses KLX Position (Spin-Off From B/E Aerospace)

Andrew Spokes' hedge fund firm Farallon Capital has filed a 13G with the SEC regarding shares of KLX Inc (KLXI).  Per the filing, Farallon now owns 7% of the company with 3,675,000 shares.

This is a newly disclosed equity position for the firm and the filing was made due to activity on January 16th.  KLX was recently spun-off from B/E Aerospace (BEAV) and BEAV shareholders received 1 KLXI share for every 2 BEAV shares held.

Given that Farallon didn't own BEAV as of the end of the third quarter, they either bought BEAV in the fourth quarter and then received KLXI shares in the spin-off, or they just purchased KLXI straight up once it was separated.

Per Google Finance, KLX is "the distributor and service provider of aerospace fasteners and consumables. The Company offers ranges of aerospace hardware and consumables, and inventory management services across the world. The Company operates in two segments: Aerospace Solutions Group (ASG) segment and Energy Services Group (ESG) segment. Its customers include oil and gas companies that are engaged in the exploration, and production and development of oil and gas properties. The Company through its network and information technology systems offer services to commercial airliners, business jet and defense original equipment manufacturer (OEMs) and its subcontractors, airlines, and maintenance, repair and overhaul (MRO) operators. The Company provides access to over one million stock keeping unit (SKUs). Its systems support both internal distribution processes, along with customer services, including just-in-time deliveries and kitting solutions."

JANA Partners Trims PetSmart Stake Again

Barry Rosenstein's activist hedge fund JANA Partners has filed another amended 13D with the SEC regarding their position in PetSmart (PETM).  Per the filing, JANA now owns 5.1% of the company with over 5.05 million shares.

This is the second time they've cut their position size in January.  After dropping their stake from 9.69 million shares down to 7.6 million, they've now reduced it further to 5.05 million.  The filing was made due to activity on January 22nd.

PetSmart is set to be acquired by BC Partners in an $8.7 billion deal, so perhaps JANA is reducing exposure to what has become an arbitrage play in order to free up capital to deploy into other opportunities. 

We've also posted up other portfolio activity from JANA this month as well.

Oaktree Capital Files 13G on Century Communities

Howard Marks' distressed focused firm Oaktree Capital has filed a 13G with the SEC on shares of Century Communities (CCS).  Per the filing, Oaktree now owns 5.9% of the company with 1,278,091 shares.

This is a newly revealed equity stake and the filing was made due to activity on January 16th. 

For more from this hedge fund's founder, be sure to check out Howard Marks' latest letter.

Per Yahoo Finance, Century Communities is "engaged in homebuilding activities primarily in metropolitan markets in Colorado."

Peltz's Trian Fund Trims Family Dollar Stake

Nelson Peltz's activist investment firm Trian Fund Management has filed an amended 13D with the SEC regarding their position in Family Dollar (FDO).  Per the filing, Trian now owns 2.07% of the company with over 2.36 million shares.

This means they've reduced their position size by over 6 million shares since the end of the third quarter.  The filing was made due to activity on January 26th. 

FDO recently agreed to a deal with Dollar Tree (DLTR) and Trian has already reduced its investment.

Lee Cooperman Starts 2 New Stakes, Adds To 4 Positions, Trims Another

Omega Advisors' Lee Cooperman filed a myriad of amended 13G's with the SEC recently.  Here's the breakdown:


Starts 2 New Positions: Aspen Group & Arbor Realty Trust

The hedge fund manager has revealed newly bought stakes in two companies: Aspen Group (ASPU), an online education company, and Arbor Realty Trust (ABR), a specialized real estate finance company.  Both positions were disclosed due to activity on December 31st, 2014.

Cooperman now owns 7.11% of Aspen Group with 8 million shares and owns 7.53% of Arbor Realty Trust with over 3.77 million shares.


Adds to Altisource Portfolio Solutions, Calls Out Management

Also, Cooperman has filed a 13G, Form 3, and multiple Form 4's with the SEC regarding Altisource Portfolio Solutions (ASPS).  He disclosed an ownership stake of 11.14% of the company with over 2.25 million shares as of December 31st, 2014.  This means he's increased his position by almost a million shares since the end of the third quarter.

The Form 4 indicates that Cooperman bought ASPS shares at weighted average prices of $47.47 and $39.42 on December 19th and 22nd, respectively.

Shares of ASPS currently trade around $22 after the company has been hit with regulatory scrutiny as the New York Department of Financial Services (DFS) came down hard on ASPS's biggest customer, Ocwen Financial (OCN), and in turn ASPS as well.  Both companies were part of Bill Erbey's empire and as part of the settlement with the DFS, Erbey will step down from his posts at both companies.

Cooperman also recently appeared on a company conference call and lashed out at management for poor capital allocation decisions, asking "what I'm trying to figure out to be honest with you ... whether your testicles are bigger than your brains or your brains are bigger than your testicles."

The company bought back a ton of stock at much higher prices (around $104 per share) during the period of regulatory scrutiny, only to see their shares plummet much further down to current levels of around $22. 

Numerous hedge funds have been involved in ASPS and OCN shares and it will be interesting to see who held on through the carnage, who exited, and who might have picked up shares as a distressed play at the end of 2014.  Unfortunately, it will be another 3 weeks until those disclosures (Q4 13F filings) are submitted to the SEC.

At the end of the third quarter, the largest holders of ASPS were Luxor Capital, Omega Advisors, White Elm Capital, among others.  Top OCN holders included Pennant Capital, Highfields Capital, Baupost Group, Kingstown Capital, Own Creek Asset Management, White Elm Capital, among others.  Since the end of the third quarter, OCN is down 72% and ASPS is down 78%.


Adds to Atlas Energy & Atlas Pipeline Stakes

Next, the Omega Advisors founder has been out buying shares of Atlas Energy (ATLS).  Per the 13G filing, Cooperman now owns over 7 million shares (an increase of over 2.9 million shares since the end of the third quarter).

Additionally, he has also increased his exposure to Atlas Pipeline Partners (APL) and now owns over 7.45 million shares (compared to the 3.34 million he owned at the end of the third quarter).


Increases Gulf Coast Ultra Deep Royalty Trust Exposure

Next, Cooperman has disclosed an increased position in Gulf Coast Ultra Deep Royalty Trust Units (GULTU).  He previously owned 16.9 million shares but now owns 22.22 million, an increase of over 5.3 million shares since the end of the third quarter.


Slightly Trims Chimera Investment Corp Stake

Lastly, Cooperman disclosed in another 13G that he has ever-so-slightly reduced his stake in Chimera Investment Corp (CIM) by a minor 168,645 shares.  He still retained a position of over 64.3 million shares at the end of 2014.

For more of Cooperman's recent portfolio activity, head here.

Bridger Capital Starts Arrowhead Research Stake

Roberto Mignone's hedge fund firm Bridger Capital has filed a 13G with the SEC regarding shares of Arrowhead Research (ARWR).  Per the filing, Bridger now owns 5.5% of the company with over 2.98 million shares.

This is a newly disclosed equity position for the hedge fund and the SEC filing was made due to activity on January 13th.

Per Google Finance, Arrowhead Research is "a biopharmaceutical company developing targeted RNAi therapeutics. The Company is leveraging its drug delivery technologies to develop drugs based on the RNA interference mechanism that silences disease-causing genes. Arrowhead technologies also enable partners to create peptide-drug conjugates that specifically home to cell types of interest while sparing off-target tissues. Arrowhead’s pipeline includes clinical programs in chronic hepatitis B virus and partner-based programs in obesity and oncology. ARC-520 is an RNAi-based therapeutic designed to treat chronic hepatitis B virus (HBV) infection. Arrowhead’s anti-obesity drug candidate, Adipotide, selectively destroys the blood supply that supports the growth of unhealthy fat by the targeted induction of apoptosis (cell death) in the vasculature of adipose tissue. In April 2012, the Company acquired Alvos Therapeutics, Inc."

Richard Gerson's Falcon Edge Capital Discloses Tekmira Pharma Stake

Richard Gerson's hedge fund firm Falcon Edge Capital has filed a 13G with the SEC regarding shares of Tekmira Pharma (TKMR).  Per the filing, Falcon Edge now owns 9.9% of the company with over 2.22 million shares.

This is a newly disclosed equity position for the hedge fund and the filing was due to activity on January 12th.  Tekmira recently bought OnCore Biopharma, creating a company focused on creating Hepatitis B treatments.

Prior to founding Falcon Edge, Gerson worked with John Griffin at Blue Ridge Capital, a fund the site has tracked for many years.

Per Google Finance, Tekmira Pharma is "a biopharmaceutical company focused on advancing ribonucleic acid (RNA) interference (RNAi) therapeutics and providing its lipid nanoparticle (LNP) delivery technology to pharmaceutical and biotechnology partners. Its product candidates include TKM-HBV, TKM-PLK1, TKM-Ebola and TKM-Marburg. TKM-HBV is an RNAi therapeutic for the treatment of Hepatitis B infection. The Company’s lead oncology product candidate, TKM -PLK1 is an oncology product platform that targets polo-like kinase 1 (PLK1), a protein involved in tumor cell proliferation and a validated oncology target. TKM-ALDH2 is an application of RNAi for alcohol use disorder with a target patient population who have moderate to severe alcohol use disorder. TKM-Ebola is an anti-Ebola viral therapeutic being developed under a contract with the United States Department of Defense Joint Project Manager Medical Countermeasure Systems. TKM-Marburg is used to treat hemorrhagic fever viral infections.."

What We're Reading ~ Hedge Fund Links 1/23/15

2015 investor outlook from industry players [HF Intelligence]

Howard Marks and others on their biggest investment mistakes [BeyondProxy]

A look at the latest happenings at Viking Global [ii alpha]

PointState Capital makes $1 billion on oil bet [Bloomberg]

Eton Park Capital eyes energy sector [Reuters]

ValueAct bets on Halliburton deal with Baker Hughes stake [Bloomberg]

The woman who is posting some good returns [Forbes]

A tale of another hedge fund blowup [CNBC]

The Growth of Single Family Offices

By: Richard Wilson

Hello,

I wanted to share a few words on the family office industry based on my experience as founder of the Family Office Club, the #1 largest family office association, and research I conducted for my latest book, The Single Family Office: Creating, Operating & Managing Investments of a Single Family Office.

With so much new wealth creation in the world, single and multi-family offices have emerged as a preferred structure to handle the needs of high net worth individuals and ultra-high net worth individuals.  The family office model provides a much-needed structure for managing wealth and all of the important services that are used by exceptionally affluent families.

The State of Wealth Worldwide

According to the 2013 World Wealth Report by Capgemini, there are 111,000 ultra-high net worth individuals (those with $30M or more in net worth) around the world.  Our experience suggests there are between 7,000 to 10,000 formalized single family offices globally.  Our research and surveys also indicate that there are over 20,000 families with $100M in wealth or greater.  If you look at global wealth trends, you can see that there is an astounding increase in new wealth being created, and not only in traditional wealth hubs like North America and Europe, but we are already seeing a shift in affluence to emerging markets such as China, India and fast-growing economies in the South Pacific.

The Growing Need For Single Family Offices

Single family offices have the ability to best serve ultra-wealthy families, in the most focused, holistic, and aligned way possible.  Single family offices are not well understood, and yet they are all around us and actively engaged in business, the community, and any number of different activities that affect us.  Single family offices are often behind venture capital firms, operating private businesses, backing the powerful politicians that we love (and those that we don't), and owning the sports teams that we enjoy watching.

Ultra-high net worth individuals control more than one-third of the total high net worth individual wealth in the world and represent less than one percent of the global high net worth individual population.  These individuals possess extraordinary assets and represent some of the greatest success stories in modern history, from Wal-Mart's Sam Walton to the Wizard of Omaha himself, Warren Buffett.  With these families' major impact on society and business, it is no wonder that so many people are interested in learning more about how these affluent families protect their assets and manage their resources.

Free Video:  If you would like to learn more about the history of the family office industry, please see this short video recorded at 10,000 feet in the Swiss Alps:
http://SingleFamilyOffices.com/History

Single family offices are thriving globally, with new organizations being launched around the world.  Our team estimates that there are at least 7,000 single family offices globally, a good portion of which have no website, no business cards, and only a select few people who are informed regarding their actual legal structure or holdings.  This culture of privacy makes sense given the high-profile of the clients, but it can be frustrating for those looking to work with family offices and even other single family offices who just want to network with their peers.  That is why we launched the Family Office Club nearly a decade ago and why we host live networking events and conferences like next month's Single Family Office Summit in New York.  These are some of the few opportunities for live interaction with family office executives and a chance for those in the industry to share their wealth management strategies, views on the market, and best practices for serving their family clients.

We will continue to provide resources and information on the family office industry and we encourage you to join our association, take advantage of free resources like the video above or our free PDF report, and other information available on our website:  http://FamilyOffices.com

If you are looking to attend that Single Family Office Summit, we have extended a special discount to Market Folly readers so you can attend for just $797 by using the discount code "SFO" here:  http://WilsonConferences.com/SFO or you can call (212) 729-5067 to complete your reservation over the phone.

Thank you for your time and please do not hesitate to contact me if you have any questions about the family office industry.

Richard C. Wilson
CEO & Founder
The Family Office Club
Direct: (503) 922-1811
Fax: (480) 772-4041
77 Harbor Drive Suite #76
Key Biscayne, Florida 33149
Live Conferences: http://WilsonConferences.com
Associations & Communities: http://FamilyOffices.com | http://PrivateEquity.com
The Single Family Office Book: http://www.amazon.com/Single-Family-Office-Operating-Investments/dp/1503345033/ref=sr_1_1?ie=UTF8&qid=1420651026&sr=8-1&keywords=the+single+family+office

Jim Chanos Short Intel

Short seller Jim Chanos, founder of Kynikos Associates, is short Intel (INTC).  He appeared on CNBC this morning to talk about his outlook on the PC industry.  He also mentions he's long Apple (AAPL).

Embedded below is the video of Jim Chanos' appearance on CNBC:

What We're Reading ~ Hedge Fund Links 1/16/15

Hedge fund winners and losers of 2014 [Institutional Investor]

Dear hedge funds, it's not you, it's the fees [FT Alphaville]

How Meredith Whitney's American revival sputtered in debut year [Bloomberg]

Paulson & Co hit by 2014 losses [Bloomberg]

Brad Pitt, Christian Bale, and Ryan Gosling to star in movie 'The Big Short' [Variety]

Peter Lynch on Investing: Video From 1994

Well regarded investor Peter Lynch is famous for his 'invest in what you know' approach.  Here's an interesting video of the Magellan Fund investor from 1994 entitled "Making Money in the Stock Market: Peter Lynch on Investing in the U.S. economy."

Embedded below is the video:



For more from this prominent investor, be sure to check out Lynch's well known book: One Up On Wall Street:  How To Use What You Already Know To Make Money In The Market.

What We're Reading ~ Analytical Links 1/14/15

The Zulu Principle: Making extraordinary profits from ordinary shares [Jim Slater]

The perils of trying to time the market [Brooklyn Investor]

The six deadly sins of investing [Stable Investor]

A message from the bond market? [A Dash of Insight]

Advice on how to become a research analyst [CFA Institute]

A look at the new investing year [Mutual Fund Observer]

Why the Google downgrade is a year too late [MicroFundy]

Is Google the new Microsoft? [Bloomberg View]

On Dodge & Cox's secret ingredient [Barrons]

A look at Byron Trott: the billionaires' banker [Fortune]

Byron Wien's top ten surprises for 2015 [StreetInsider]

Title II for internet providers is all but confirmed by FCC chairman [Ars Technica]

Household debt servicing at a historical low [Calculated Risk]

A new policy to rescue Ukraine [George Soros]

Startup values set records [WSJ]

What We're Reading ~ Hedge Fund Links 1/9/14

Love him or hate him, Bill Ackman now runs the top hedge fund [Bloomberg]

Meet the most powerful woman in hedge funds [CNBC]

ValueAct takes swipe at MSCI [FT]

Jeff Gundlach: I just hope the Fed thinks carefully about what it's doing [FUW]

Kyle Bass going after big pharma [Business Insider]

3G Capital eyes next targets [WSJ]

Mohnish Pabrai: I have no original ideas, I am a 100% cloner [Rakesh Jhunjhunwala]

Permanent capital: perpetual cash machines [FT]

Top hedge fund trends for 2015 [FINalternatives]

Tiger Global funds Glassdoor [Glassdoor]

Is something a 'failure' if other successes come from it? [Eddie Lampert]

Tom Brown on Ocwen's abominable deal with New York regulators [Bank Stocks]

What We're Reading ~ Analytical Links 1/7/14

The simple concept of intrinsic value [Base Hit Investing]

Distinguishing skill from luck [Economist]

The 2015 sleeper ideas list: trends, stocks & private companies [Forbes]

The 2015 buy list [Crossing Wall Street]

The danger of 1-year performance numbers [Wealth of Common Sense]

The best and worst investments they ever made [WSJ]

Investing advice for my son [Clear Eyes Investing]

A look at the upcoming Shake Shack IPO [Brooklyn Investor]

What happened when Marissa Mayer tried to be Steve Jobs [NYTimes]

China's video hosting sites see boom times [FT]

WaMu's $600m private rebirth [Seeking Alpha]

The conventional wisdom on oil is always wrong [Five Thirty Eight]

Why gas feels cheap and why it's not historically [WSJ]

Endangered species: young US entrepreneurs [WSJ]

ESPN without cable? For $20 it's a reality [Atlantic]

CEO's predictions on what's next in wireless [T-Mobile]

The economics (and nostalgia) of dead malls [NYTimes]

Viking Global Reduces Illumina, Mohawk Industries Stakes

Andreas Halvorsen's hedge fund Viking Global has filed two separate 13G's with the SEC regarding some of their positions.


Reduces Illumina Stake

First, Viking has disclosed they now own 5.8% of Illumina (ILMN) with over 8.18 million shares.  This is a decrease of 461,081 shares since the end of the third quarter.  The filing was made due to portfolio activity on January 2nd.

Per Google Finance, Illumina is "a developer and manufacturer of life science tools and integrated systems for the analysis of genetic variation and function. The Company is organized in two business segments: Life Sciences and Diagnostics. Its Life Sciences business unit includes all products and services related to the research market, namely the product lines based on its sequencing, BeadArray, VeraCode, and real-time PCR technologies. Its Diagnostics business unit focuses on molecular diagnostics. Its customers include genomic research centers, academic institutions, government laboratories, and clinical research organizations, as well as pharmaceutical, biotechnology, agrigenomics, and consumer genomics companies."









Cuts Mohawk Industries Position

Second, the hedge fund firm has revealed they own 5.5% of Mohawk Industries (MHK) with over 4 million shares.  They've reduced their position by over 1.63 million shares since the end of the third quarter.  The filing was required due to activity on January 2nd.

Per Google Finance, Mohawk Industries is "a flooring manufacturer. The Company's manufacturing and distribution processes provide carpet, rugs, ceramic tile, laminate, wood, stone and vinyl flooring. The Company's key brands include American Olean, Bigelow, Daltile, Durkan, Karastan, Kerama Marazzi, Lees, Marazzi, Mohawk, Pergo, Quick-Step and Unilin. The Company has three reporting segments: the Carpet segment, the Ceramic segment and the Laminate and Wood segment. The Carpet segment designs, manufactures, sources, distributes and markets its carpet and rug products. The Carpet segment also markets and distributes ceramic tile, laminate, hardwood, resilient floor covering, carpet pad and flooring accessories. The Ceramic segment designs, manufactures, sources, distributes and markets ceramic tile, porcelain tile and natural stone products. The Laminate and Wood segment designs, manufactures, sources, licenses, distributes and markets laminate and hardwood flooring."

We've also highlighted some other recent portfolio activity from Viking Global here.

Discount to Boyar Research's Forgotten Forty Report: Stock Picks For the New Year

It's a new year and investors are always on the lookout for new investment ideas.  To help with that, Market Folly has secured a 10% discount to Boyar Research's "Forgotten Forty", a 45-page report that profiles companies they feel will outperform in the year ahead.  The discount expires on January 16th, so take advantage while it lasts.


Complimentary Copy of Last Year's Report

Their report features one-page snapshots of their investment thesis for each stock, a catalyst for value realization, and an estimate of intrinsic value. 

They've allowed us to share with you a complimentary copy of last year's report so you can see what you'd be receiving.

*** To download the free report, click here. ***


Historical Performance of Boyar's Picks

As you can see below, their stock picks' CAGR has beaten the S&P 500 over 1-year, 3-year, 5-year, and 10-year timeframes:

*All performance results are unaudited.  These results are as of The Forgotten Forty priced on December 12, 2013.  Past performance is no guarantee of future success.


10% Discount For Our Readers

To save 10% on Boyar's Forgotten Forty report, click here to take advantage of the Market Folly discount.  And remember, the discount expires on January 16th.

What We're Reading ~ Hedge Fund Links 1/2/15

For hedge funds, a year of highs and lows [WSJ]

The next chapter of Alibaba and the 106 hedge funds [ii alpha]

Tepper: 2015 might be like 1999 [CNBC]

David Herro on his evolution as an investor [ValueWalk]

Merchants' Gate Capital closes [Bloomberg]

Li Lu buys BYD during big dip [Forbes]

Hedge fund industry's top performers mainly small, little known [Reuters]

2015: the year hedge fund fees come down to earth? [CNN]

Time may be up for hedge fund replicants [FT]

Meredith Whitney's hedge fund said to be in turmoil [Bloomberg]

JANA Partners Blows Out Of Civeo Position

Barry Rosenstein's activist hedge fund firm JANA Partners has filed a Form 4 and 13D with the SEC regarding shares of Civeo (CVEO).  Per the filing, JANA Partners no longer owns any CVEO shares.

The Form 4 notes that JANA sold the bulk of its position on December 30th at prices of $4.13 and $4.29.  Shares fell over 50% during the month of December.

Per Google Finance, Civeo "operates in active oil, coal, natural gas and iron ore producing regions, including Canada, Australia and the United States. The Company is engaged in providing an integrated service offering to its customers, which include independent oil and natural gas companies, mining companies and oilfield and mining service companies. The Company’s premium accommodations services allow its customers to outsource their accommodations needs to a single supplier, maintaining employee welfare and satisfaction while focusing their investment on their core resource development efforts. In June 2014, Oil States International Inc completed spin-off of the Company."

You can view additional past portfolio activity from JANA Partners here.

Corvex Management Takes American Realty Capital Stake

Keith Meister's activist hedge fund Corvex Management has filed a 13D with the SEC regarding American Realty Capital (ARCP).  Per the filing, Corvex now owns 7.1% of the company with over 64.7 million shares (with 56.77 million of those shares underlying call options).  This is a new position for the hedge fund.

The activist filing indicates that Corvex has met with company management and want to add members to the board.  The filing was required due to activity on December 18th.

We've highlighted additional recent portfolio activity from Corvex here.

Per Google Finance, American Realty Capital is "a real estate investment trust (REIT). The Company owns and acquires single-tenant, freestanding commercial real estate primarily subject to medium-term net leases with credit quality tenants."

Tiger Global Discloses On Deck Capital Position

Chase Coleman and Feroz Dewan's hedge fund Tiger Global has filed a 13G with the SEC regarding On Deck Capital (ONDK).  Per the filing, Tiger Global now owns 9.2% of the company with over 6,333,004 shares.

This is a newly disclosed equity stake and the filing was made due to activity on December 17th as the company recently completed its initial public offering (IPO).  It priced at $20 and now trades around $22.

Per Google Finance, On Deck Capital is "an online platform for small business lending. Enabled by its technology and analytics, the Company aggregates and analyzes data points from dynamic, disparate data sources to assess the creditworthiness of small businesses. Small businesses can apply for a term loan or line of credit on its Website and, using its OnDeck Score, it can make a funding decision immediately and transfer funds the same day."

You can view other Tiger Global portfolio activity here.

Eminence Capital Reveals Darling Ingredients Stake

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding shares of Darling Ingredients (DAR).  Per the filing, Eminence now owns 5% of the company with over 8.26 million shares.

This is a newly disclosed equity position for the fund and the filing was made due to activity on December 17th.

Per Google Finance, Darling Ingredients is "a provider of rendering, cooking oil and bakery waste recycling and recovery solutions. The Company collects and recycles animal by-products, bakery residual and used cooking oil from poultry and meat processors, commercial bakeries, grocery stores, butcher shops, and food service establishments and provides grease trap cleaning services to many of the same establishments."

We've recently highlighted other portfolio activity from Eminence Capital as well.

Viking Global Starts Avis Budget Group Position

Andreas Halvorsen's hedge fund firm Viking Global has started a new position in Avis Budget Group (CAR).  Per a 13G just filed with the SEC, Viking now owns 5% of the company with over 5.34 million shares.

They did not report owning a stake at the end of the third quarter.  The filing was made due to activity on December 17th.  This is now the second major hedge fund to file with the SEC regarding CAR shares.  We highlighted last week that Glenview Capital also was buying Avis Budget shares.

Per Google Finance, Avis Budget Group is "a provider of vehicle rental and car sharing services. The Company operates under brands Avis, Budget and Zipcar. The Company’s other brands include Budget Truck, Payless and Apex."

Carl Icahn Discloses Manitowoc Stake, Pushes For Company to Split Up

Activist investor Carl Icahn today filed a new 13D with the SEC concerning shares of Manitowoc (MTW).  Per the filing, Icahn now owns 7.77% of the company with over 10.5 million shares (including shares underlying call options).

This is a brand new position for him and the filing was required due to activity on December 17th.  The filing notes that Icahn wants the company to separate its Crane and Foodservice segments into two separate companies.

Per the 13D, Icahn was out buying MTW common stock in the middle of December at prices ranging from $16.83 to $19.30, along with August 2016 call options with an $18 strike.

We've recently covered some additional portfolio activity from Icahn as well.

Per Google Finance, Manitowoc is "a multi-industry, capital goods manufacturer. MTW operates in two markets: Cranes and Related Products (Crane) and Foodservice Equipment (Foodservice). Crane is a provider of engineered lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks. Foodservice is a manufacturer of commercial foodservice equipment serving the ice, beverage, refrigeration, food-preparation, and cooking needs of restaurants, convenience stores, hotels, healthcare, and institutional applications."

Horizon Kinetics on Owner Operators

This presentation on owner operators from Horizon Kinetics is a few years old (2011) but still very much worth a read.  These types of investments have long drawn the attention of various investors and this takes a look at the history, definition, and more.

Embedded below is Horizon Kinetics' research piece on owner operators:

Glenview Capital Increases Avis Budget, Lithia Motors & PVH Corp Positions

Larry Robbins' hedge fund firm Glenview Capital has been active recently in shares of three of their holdings.


Increases Avis Budget Group Stake

Readers of the site won't be surprised by this move because we highlighted an interview with Robbins where he pointed out his fondness for car rental companies a few months ago.  Glenview has revealed they now own 5.2% of Avis Budget Group (CAR) with 5.44 million shares per a 13G filed with the SEC.

This means they've increased their stake by over 1.49 million shares since the end of the third quarter. The filing was required due to activity on December 10th.

Per Google Finance, Avis Budget Group is "a provider of vehicle rental and car sharing services. The Company operates under brands Avis, Budget and Zipcar. The Company’s other brands include Budget Truck, Payless and Apex. The Company operates in three segments: North America, which operates provides car rentals in the United States and vehicle rentals in Canada, as well as ancillary products and services, and operates the Company’s Zipcar car sharing business; International that provides and licenses its brands to third parties for vehicle rentals and ancillary products and services primarily in Europe, the Middle East, Africa, Asia, South America, Central America, the Caribbean, Australia and New Zealand; and Truck Rental, which provides truck rentals and ancillary products and in the United States."


Boosts Lithia Motors Position

Second, Glenview Capital has also revealed a 5.92% ownership stake in Lithia Motors (LAD) with over 1.4 million shares.  They've boosted their position size by 237,364 shares since the end of the third quarter.

Per Google Finance, Lithia Motors is "an operator of automotive franchises and a retailer of new and used vehicles and services. The Company sells new and used cars and light trucks and replacement parts; provides vehicle maintenance, warranty, paint and repair services; and arranges related financing, service contracts, protection products and credit insurance."


Adds To PVH Corp Holdings

Lastly, Larry Robbins' hedge fund firm also filed a 13G with the SEC regarding their PVH Corp (PVH) stake.  They now own 5.5% of the company with over 4.53 million shares.

This is an increase of 427,071 shares since the end of the third quarter and the filing was required due to activity on December 10th.

Per Google Finance, PVH is "an apparel company. The Company’s portfolio of brands includes Calvin Klein, Tommy Hilfiger brands, Van Heusen, IZOD, Bass, ARROW and Eagle, which are owned brands, and Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, Sean John, JOE Joseph Abboud, MICHAEL Michael Kors, Michael Kors Collection, CHAPS, Donald J. Trump Signature Collection, DKNY, Elie Tahari, Nautica, Ted Baker, J. Garcia, Claiborne, Robert Graham, U.S. POLO ASSN., Axcess and Jones New York, which are licensed, as well as various other licensed and private label brands. It designs and markets branded dress shirts, neckwear, sportswear and, to a lesser extent, footwear and other related products. Additionally, it licenses its owned brands over a range of products."


This isn't the only activity out of Glenview recently either.  Robbins' firm also bought shares of two more companies.

ValueAct Capital Trims Adobe Systems Stake

Jeff Ubben's activist hedge fund firm ValueAct Capital has filed a Form 4 with the SEC regarding their stake in Adobe Systems (ADBE).

Per the filing, they've sold over 5 million shares of ADBE since the end of the third quarter.  These sales came at prices of $75.02, $74.72, and $74.57 on December 18th, 19th, and 22nd respectively.

After these recent sales, they're left with 16,700,000 shares.

Per Google Finance, Adobe Systems is "a diversified software company. The Company offers a line of software and services used by professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, delivering, measuring and engaging with content and experiences across multiple operating systems, devices and media."


For more from this manager, be sure to check out Ubben's presentation from the Sohn Conference San Francisco.

Eminence Capital Adds To Xoom, Men's Wearhouse Stakes

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G and a 13D with the SEC regarding two of their positions.


Adds To Xoom Stake

First, Eminence has revealed a 6.4% ownership stake in Xoom (XOOM) with over 2.44 million shares. 

This means they've boosted their stake by over 1.57 million shares since the end of the second quarter.  The filing was required due to activity on December 9th.

Per Google Finance, Xoom is "engaged in online international money transfer service. Its customers use Xoom to send money to family and friends in 30 countries. The Company generates revenue from transaction fees charged to customers and from foreign exchange spreads on transactions where the payout currency is other than United States dollars."


Increases Men's Wearhouse Position

Second, Sandler's hedge fund also disclosed a 11.9% ownership stake in Men's Wearhouse (MW) with over 5.7 million shares in an amended 13D filing with the SEC.

Their position size is now larger to the tune of 1.15 million more shares.  The filing was required due to activity on December 16th.

The filing also notes that Eminence's standstill clause (which capped their ownership at 10%) has been amended to 12%.

Per Google Finance, Men's Wearhouse is "a specialty retailer of men's suits and a provider of tuxedo rental product in the United States and Canada. It operates in two segments: retail and corporate apparel."

For more from this manager, you can see what stocks Sandler recommended at the Robin Hood Investors Conference.

Howard Marks' Latest Memo: The Lessons of Oil

Oaktree Capital's chairman Howard Marks is out with his latest memo.  His commentary is considered some of the best out there and even Warren Buffett reads it.  Marks' latest missive is entitled "The Lessons of Oil" and it is embedded below.



You can download a .pdf copy here.

For more from Marks, we'd highly recommend also checking out his book, The Most Important Thing.

NYU Stern Evaluation Investment Newsletter: December 2014 Edition

The latest issue of NYU Stern's newsletter Evaluation is now available.  It highlights public finance and infrastructure investing.  Additionally, it features student investment pitches including  long Polaris Industries (PII), long RPX Corp (RPXC), long LVMH, short Alliant Techsystems (ATK), and long the Indian Rupee.

The December 2014 Evaluation newsletter is embedded below:



If you missed it, be sure to check out a past issue of Evaluation featuring an interview with Avenue Capital's Marc Lasry.

What We're Reading ~ Hedge Fund Links 12/19/14

Year of man versus machine for hedge funds [FT]

Ray Dalio at the Dealbook Conference: it's a good environment, but... [CNBC]

Paul Singer at the Dealbook Conference : the 'unfair' recovery is the Fed's fault [CNBC]

What some hedge fund professionals are betting on in 2015 [FINalternatives]

No wonder they call hedge funds 'smart money' [Business Insider]

Greenwich's rise as a hedge fund capital [CTPost]

Big hedge funds win again on PetSmart, Riverbed [CNBC]

Greenlight Capital Adds To Cairn Energy Holdings

David Einhorn's hedge fund Greenlight Capital has added to its stake in London listed Cairn Energy (LON:CNE).  Due to trading on December 12th, Einhorn's fund increased its holding from 4.2% to 6.2% of voting rights. 

Most of the position is via common stock but around 12% is held via a total return swap.  Their latest shares were bought around the 160p mark.

Greenlight first disclosed a 3% in Cairn back in Mach 2012 when shares traded at around 350p.  Since then, they have gone above and below the 3% disclosure threshold a few times and then in January of this year they added shares that cost around 260p each to take the stake to 4.2%. 

For more from this manager, head to David Einhorn's most recent interview.

Per Google Finance, Cairn Energy is "an independent oil and gas exploration and development company. The Company’s operations are organised based on geographical regions. Its geographical segments include North West Europe- North Sea, Atlantic Margin-Greenland, Atlantic Margin-Morocco and the Mediterranean. The Cairn Energy Group’s operations focuses on new exploration activities in Greenland and the Mediterranean. The Company’s operating subsidiaries include Capricorn Oil Limited, Cairn UK Holdings Limited, Capricorn Energy Limited, Cairn Energy Dhangari Limited, Cairn Energy Karnali Limited, Cairn Energy Lumbini Limited, Cairn Energy Malangawa Limited, Cairn Energy Birganj Limited, Capricorn Albania Limited, Capricorn Spain Limited, Capricorn Greenland Exploration 1 Limited and Capricorn Lady Franklin Limited."

Balyasny Starts Laredo Petroleum Position, Boosts Penn National Gaming Stake

Dmitry Balyasny's hedge fund firm Balyasny Asset Management has just filed two separate 13G's with the SEC today. 

Starts Laredo Petroleum Position

First, Balyasny has filed on shares of Laredo Petroleum (LPI).  Per the filing, Balyasny now owns 5.31% of the company with over 7.62 million shares.

This is a newly disclosed equity position for the firm as they did not hold a position at the end of the third quarter.  The filing was made due to activity on December 16th.

Balyasny has been actively buying shares of KBR as well as Oasis Petroleum recently too.

Per Google Finance, Laredo Petroleum is "focused on the exploration, development and acquisition of oil and natural gas properties primarily in the Permian region of the United States. The Company’s primary exploration and production fairway in the Permian Basin is centered on the eastern side of the basin 35 miles east of Midland, Texas and extends 20 miles wide (east/west) and 85 miles long (north/south) in Glasscock, Howard, Reagan, Sterling and Tom Green counties, and is referred to as the Permian-Garden City area."


Boosts Penn National Gaming Stake

Second, Balyasny Asset Management has disclosed a 5.74% ownership stake in Penn National Gaming (PENN) with over 4.52 million shares.

This means they've increased their position size by around 840,000 shares since the end of the third quarter. The filing was made due to activity on December 12th.

Per Google Finance, Penn National Gaming is "a diversified owner and manager of gaming and pari-mutuel properties."

Carl Icahn Raises Hertz Global and Navistar Stakes

Activist investor Carl Icahn has filed two separate amended 13D's with the SEC.

Increases Hertz Global Stake Again

The corporate rabblerouser has continued to buy shares of Hertz Global (HTZ).  Per the SEC filing, he now owns 11.34% of the company with over 51.9 million shares.

He's increased his position size by 13.1 million more shares since the end of November and the filing was required due to portfolio activity on December 15th.

So Icahn has been very active buying HTZ shares over the past few weeks.  Hertz is analyzed in the latest issue of our Hedge Fund Wisdom newsletter if you want to read the full bull and bear cases on the name.

Per Google Finance, Hertz Global "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).."


Adds To Navistar International Position

Icahn also filed a 13D on Navistar and disclosed he now owns 19.99% of the company with over 16.27 million shares.

This means he's boosted his position size by over 1.9 million shares since the end of the third quarter.  This filing was required due to activity on December 17th.

Per Google Finance, Navistar International is "a manufacturer of International brand commercial and military trucks, IC Bus (IC) brand buses, MaxxForce brand diesel engines, Workhorse Custom Chassis (WCC) brand chassis for motor homes and step vans, and Monaco RV (Monaco) recreational vehicles (RV), as well as a provider of service parts for all makes of trucks and trailers. In addition, it is a private-label designer and manufacturer of diesel engines for the pickup truck, van and sport utility vehicle (SUV) markets. It also provides retail, wholesale, and lease financing of trucks and parts. NIC operates in four segments: Truck, Engine, Parts and Financial Services."

TPG-Axon Capital Files 13D & 13G on SandRidge Energy Stake

Dinakar Singh's hedge fund firm TPG-Axon Capital has filed a 13D and then 13G with the SEC regarding their stake in SandRidge Energy (SD).

Per the 13G filing, the firm owns about 32 million shares, or 6.5% of the company: 4.1% via common stock and 2.4% economic on basket swap.  The firm executed a swap to realize certain gains/losses for tax planning.

This is a reduction in their position size, as they previously disclosed ownership of over 39 million shares at the end of the third quarter (via their last 13F filing with the SEC).

Per Google Finance, SandRidge Energy is "an independent oil and natural gas company. The Company is engaged in development and production activities in the Mid-Continent, Gulf of Mexico and Permian Basin in west Texas. Its primary area of focus is the Mississippian formation, a shallow hydrocarbon system in the Mid-Continent area of northern Oklahoma and Kansas. The Company also operates businesses that are complementary to its primary development and production activities, including gas gathering and processing facilities, an oil and natural gas marketing business and an oil field services business, including its wholly owned drilling rig business, Lariat Services, Inc. (Lariat)."

What We're Reading ~ Analytical Links 12/17/14

Good interview with Amazon's Jeff Bezos [BusinessInsider]

122 things everyone should know about investing and the economy [Morgan Housel]

On castles and moats [Sova Group]

Global market sentiment survey 2015 [CFA Institute]

How the rising dollar could trigger the next global financial crisis [WSJ]

Berkshire director offers rare peek into Buffett's boardroom [BizJournals]

On the importance of "knowing the why" re: stock price fluctuations [Micro Fundy]

On how to have fun investing [Value and Opportunity]

Homebuilder sentiment diverges from reality [WSJ]

Inside Facebook's plan to wire the world [Time]

The hole in Google's mobile strategy [The Information]

Why Windows 10 is so important to Microsoft's future [TheStreet]

A look at Tropicana Entertainment [Clark Street Value]

More signs that software is eating investment management [Abnormal Returns]

Throwing money at start-ups in frenzy to find the next Uber [Dealbook]

8 secrets of success [TED]

Lee Cooperman Adds To Caesars Entertainment Stake

Lee Cooperman's hedge fund firm Omega Advisors has just filed a 13G with the SEC regarding their position in Caesars Entertainment (CZR).  Per the filing, Cooperman has revealed a 5.41% ownership stake in CZR with over 7.81 million shares.

He's boosted his stake by 824,967 since the end of the third quarter and the filing was required due to activity on December 12th.

Per Google Finance, Caesars Entertainment is "a diversified casino-entertainment provider.."

Balyasny Asset Management Increases KBR Position

Dmitry Balyasny's hedge fund Balyasny Asset Management has filed a 13G with the SEC regarding its position in KBR (KBR).  Per the filing, Balyasny now owns 5.57% of KBR with over 8 million shares.

They've increased their position size by over 6.97 million shares since the end of the second quarter and the filing was required due to portfolio activity on December 11th.

Just yesterday, we posted up about another stock Balyasny has been buying.

Per Google Finance, KBR is "a global engineering, construction and services company supporting the energy, hydrocarbons, Government services, minerals, civil infrastructure, power, industrial and commercial markets."

12 West Capital Boosts Advanced Drainage Systems Stake

Joel Ramin's hedge fund firm 12 West Capital has filed a 13G with the SEC regarding its stake in Advanced Drainage Systems (WMS).  Per the filing, 12 West now owns 6.1% of the company with over 3.24 million shares.

They've increased their position size by over 1.73 million shares since the end of the third quarter.  The filing was required due to portfolio activity on December 4th.

For more from this hedge fund, we posted up some other recent portfolio activity from 12 West here.

Per Google Finance, Advanced Drainage Systems is "a manufacturer of thermoplastic corrugated pipe, providing a comprehensive suite of water management products and superior drainage solutions for use in the construction and infrastructure marketplace. The Company’s products are used across a range of end markets and applications, including non-residential, residential, agriculture and infrastructure applications."

Balyasny Asset Management Discloses Oasis Petroleum Position

Dmitry Balyasny's hedge fund firm Balyasny Asset Management has filed a 13G with the SEC regarding shares of Oasis Petroleum (OAS).   Per the filing, Balyasny now owns 5.24% of the company with over 5.31 million shares.

This is a newly disclosed equity stake for the firm, as they did not report ownership as of the end of the third quarter.  The filing was required due to portfolio activity on December 9th.

Like many energy stocks, Oasis has plunged from a high of $56.50 this year, down to current levels of around $12 per share.

We've posted previous portfolio activity from Balyasny here.

Per Google Finance, Oasis Petroleum is "an exploration and production company. The Company focuses on the acquisition and development of unconventional oil and natural gas resources in the Montana and North Dakota regions of the Williston Basin."

Ardsley Partners Ramps Up Independence Realty Trust Stake

Phil Hempleman's investment firm Ardsley Partners has filed a 13G with the SEC regarding their position in Independence Realty Trust (IRT).  Per the filing, they now own 5.4% of the company with over 1.73 million shares.

They've increased their stake by over 1 million shares since the end of the third quarter and the filing was required due to portfolio activity on November 20th.

Per Google Finance, Independence Realty Trust is "is a real estate investment trust (REIT). The Company holds a portfolio of multifamily properties and intends to invest in a diversified portfolio of multifamily properties."