Hedge Funds

Japan bank agitator set to prove a sad point

6 May 2022

UK hedge fund Silchester wants $3 bln Bank of Kyoto and three peers to pay higher dividends using income from absurdly outsized equity stakes. It would sensibly deploy cash and put a spotlight on weak lending activities. Alas, being right in Japan is less than half the battle.

Bank bidders solve tricky German M&A puzzle

5 Apr 2022

Advent and Centerbridge revived their $2 bln Aareal deal by offering a 12% bump and letting rebel shareholders stay invested. It should work, defying the trend of failed German takeovers. The lesson is that debt-free deals with a flexible buyer stand the best chance of success.

Frozen Russia investors can copy hedge fund trick

17 Mar 2022

Many asset managers with exposure to Russian stocks and bonds have locked their funds. One solution is to park illiquid assets in a separate vehicle – a tool known as side-pocketing. But before approving the move, regulators should ensure it’s not an excuse to charge extra fees.

Capital Calls: UK bid gets hedge funds off hook

17 Jan 2022

Concise views on global finance: Private equity group Triton sweetens its offer for pharma group Clinigen to 1.3 bln pounds, raising the chances of hedge funds accepting the deal.

Capital Calls: Hedge fund fine

22 Dec 2021

Concise views on global finance: Britain’s FCA fines BlueCrest Capital 41 mln pounds, a third of the fund’s U.S. penalty.

Elliott picks low-hanging fruit with builder punt

15 Dec 2021

After a bruising battle at utility SSE, the activist is targeting British housebuilder Taylor Wimpey. Its demands are modest and its criticisms a little overdone. Still, the $8 bln company’s lacklustre shares mean other investors should back Elliott’s call for an external CEO.

Elliott seeks hidden tech treasure in dull grocer

17 Nov 2021

Paul Singer’s fund took a 3% stake in $35 bln retailer Ahold Delhaize. Rather than cost cuts, the activist’s interest lies in the Dutch group’s online unit, worth perhaps $8 bln. But competition is fierce and rich valuations may not last. Elliott’s bet also needs good timing.

Indian startup repackages deliveries for investors

9 Nov 2021

Delhivery has grown its reach by relying on partners for warehousing and last mile, so it owns fewer assets than FedEx and Chinese peers. That leaves it more dependent on tech and exposed to volatile costs like rising rents. A $5.5 bln IPO valuation might be slow to stack up.

Richemont activism is more coaxing, less conflict

8 Nov 2021

Funds including Dan Loeb’s Third Point may push the Cartier owner to close a 20%-plus valuation discount to luxury peers. With half of the voting rights, Chairman Johann Rupert is in firm control. Unlocking value will depend on convincing him to make sensible strategic changes.

Shell’s Loeb parry uses cash, capex and chutzpah

28 Oct 2021

The $190 bln oil major needs to deflect activist Third Point’s call to split itself up. High crude prices make it easier to promise fat cash returns and invest more in green energy. Given Shell should have done that anyway, fending off Dan Loeb also requires a certain brass neck.

Gerson Lehrman IPO “edge” is it doesn’t have one

22 Oct 2021

Linking investors eager for insight with industry insiders is lucrative. Gross margins over 70% look ripe for rival expert networks to eat. GLG's emphasis on compliance after an insider-trading scandal, however, makes it look like a safe source of validation for clients.

Funky fund IPO puts premium on Goldman factor

21 Sep 2021

Petershill, which owns stakes in buyout groups and hedge funds sourced by the Wall Street firm, is targeting a value up to $5.9 bln. That’s much more than the value of its assets, and closer to a listed investment manager. Investors are placing their faith in Goldman’s contacts.

Universal offers Bill Ackman chart-topping returns

14 Sep 2021

Vivendi, run by Vincent Bolloré, is listing Taylor Swift’s label shortly after selling a stake to the hedgie. Rapid streaming growth and better margins than rival Warner make a valuation of 47 bln euros plausible. That would net a return of over 30% for Ackman’s Pershing Square.

Elliott returns to haunt backsliding Citrix

9 Sep 2021

The investor sold out in 2020. Since then, the enterprise-software group's shares have slipped 25% despite a pandemic tailwind. Now Elliott is back with a stake worth more than $1 bln and a similar list of gripes. If it worked once, the rare activist double-dip could work again.

TCI does good work as conflicted trains M&A broker

8 Sep 2021

Chris Hohn’s fund wants Canadian National to drop its bid for Kansas City Southern and leave the floor to Canadian Pacific. An investor who owns stakes in both bidders is not an impartial mediator. But Hohn is right to try to stop a tussle that will lead to the victor overpaying.

Fund investor’s IPO depends on Goldman connections

6 Sep 2021

Petershill, which buys stakes in buyout and hedge fund managers, is planning a $5 bln listing. It’s a punt on the enduring boom in alternative assets. It also depends on whether the Wall Street firm, which manages the portfolio, keeps finding attractive new firms to invest in.

Ackman’s SPAC inconveniences everyone

20 Aug 2021

The hedge fund manager aimed to have the biggest and most shareholder-friendly blank-check firm. After a deal setback and a lawsuit, he’s hoping to return $4 bln to investors early. His novel ideas have become a burden for them, for him, for regulators and even for other SPACs.

German property deal rejig risks messy stalemate

6 Aug 2021

Landlord Vonovia got the nod from regulators to submit a new $23 bln offer for peer Deutsche Wohnen. Its last bid was scuppered by hedgies hoping for a higher price. A skimpy premium means it may still not get enough shares to take full control, leading to a lengthy standoff.

Credit Suisse’s Archegos albatross is hard to dump

29 Jul 2021

A clampdown on risk after the lender lost $5.5 billion on Bill Hwang’s fund contributed to outflows of client assets and lower investment-bank revenue. And a review of the sorry saga found deep cultural failings. That complicates Chair António Horta-Osório’s efforts to move on.

Capital Calls: Bank mergers, GlaxoSmithKline

28 Jul 2021

Concise views on global finance: U.S. lender Citizens helps make the case for consolidation with its $3.5 billion acquisition of New Jersey-based Investors Bancorp. A pandemic drug bounty may help the UK pharma group’s CEO Emma Walmsley see off activist Elliott.