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.