Hedge Funds

Capital Calls: Grill makers cook their IPOs rare

27 Jul 2021

Concise views on global finance: Weber and Traeger set conservative prices for their market debuts, leaving something on the table for new investors.

Hedgie stumble takes German M&A to surreal heights

26 Jul 2021

Investors sank landlord Vonovia’s $21 bln Deutsche Wohnen offer, even though they wanted it to succeed. Too many sat on the shares, hoping for a fatter payout courtesy of Berlin’s odd takeover rules. While the deal may be salvageable, it’s a clear sign of the need for reform.

Ackman music SPAC flop makes second album trickier

19 Jul 2021

The billionaire’s $4 bln blank-cheque vehicle will seek a new deal after U.S. regulators questioned its purchase of 10% of Universal Music. The false start could put off future targets. For all its investor-friendly features, the vehicle’s backers may end up singing the blues.

Elliott’s GSK shot tests sickly CEO’s immunity

1 Jul 2021

The activist fund wants the $98 bln drugmaker to conduct a formal search for a new boss before spinning off its consumer unit. That’s a challenge to Emma Walmsley, who plans to remain in charge. A long wait until the next shareholder vote buys time to strengthen her defences.

Bolloré and Ackman will beat the Vivendi activists

15 Jun 2021

Agitators including Dan Loeb own stakes in the French tycoon’s conglomerate. A messy plan to list most of music label Universal, while selling 10% on the cheap to Bill Ackman’s SPAC, gives them plenty to aim at. But Vincent Bolloré’s near-30% control means he has the upper hand.

Ackman SPAC falls flat with Universal denouement

4 Jun 2021

After sniffing at Airbnb and Bloomberg, the billionaire’s blank-cheque firm may instead buy 10% of the music label for $4 bln. It’s a fair price but Universal was going public anyway. And Bill Ackman’s “Tontard” acolytes could get it cheaper simply by buying its parent, Vivendi.

BlackRock’s green activism fires on some cylinders

2 Jun 2021

The $9 trln asset manager voted with a hedge fund against Exxon Mobil and for tougher emissions targets at Chevron. That’s progress. Still, its voting record with other oil majors like Royal Dutch Shell suggests it sometimes gives polluters a pat rather than the required shove.

Capital Calls: Klarna, Dan Loeb, Fashion IPO

28 May 2021

Concise views on global finance: The Swedish “buy now, pay later” group’s possible $50 bln price tag may leapfrog rivals Afterpay and Affirm; the corporate agitator deserves a taste of his own medicine; About You’s mooted 3 bln euro valuation implies a discount to rivals.

FirstGroup rebels may rue waiting for the next bus

25 May 2021

Two shareholders of the UK transport operator may vote against a $4.6 bln sale of its U.S. businesses to EQT. While no knockout, the price looks fair given the lack of other certain offers. A delay could destabilise the company when it needs to focus on opportunities at home.

Capital Calls: Disney misses the mark

13 May 2021

Concise views on global finance: Walt Disney reported nearly 104 million subscribers for its streaming flagship service.

Credit Suisse’s safer future poses returns dilemma

22 Apr 2021

The Swiss bank is raising $2 bln of capital and clamping down on risk. It’s the right move following recent blowups. But it undermines CEO Thomas Gottstein’s strategy to boost growth and returns. A major rethink under incoming Chair António Horta-Osório is even more urgent.

Credit Suisse bonus cuts are a necessary gamble

13 Apr 2021

Losses from the Archegos blowup forced the Swiss bank to set aside less for payouts. The risk is that rainmakers and star traders leave. CEO Thomas Gottstein might welcome a smaller investment bank given low historic returns. It’s an overdue test of the market for banking talent.

Chancellor: Hwang has company in Keynes and Graham

6 Apr 2021

Long before the failed Archegos manager was even born, Benjamin Graham, tutor to Warren Buffett, and J.M. Keynes were teaching the perils of speculating on stocks with oodles of debt. It’s worth remembering their stories as Credit Suisse, Nomura and others count their losses.

Credit Suisse’s spring clean has barely started

6 Apr 2021

Risk chief Lara Warner and investment bank boss Brian Chin are leaving after the Swiss bank unveiled a $4.7 bln hit from Archegos’ collapse. New board investigations should include deeper soul-searching over recent scandals. Restructuring and business disposals may be necessary.

Capital Calls: Icahn’s new CEO, Google vs. Oracle

1 Apr 2021

Concise views on global finance in the Covid-19 era: Activist investor Carl Icahn takes on a GE veteran adept at building businesses up and breaking them down; why Google’s win in the U.S. Supreme Court ought to benefit startups too.

Viewsroom: Everything we know about Archegos

1 Apr 2021

The extraordinary unwinding of Bill Hwang’s family office was one of those rare stories that connected Breakingviews columnists from Hong Kong, New York, Zurich, London, Melbourne and Washington into one big, hard-working family. Here are some of the lessons they learned.

Credit Suisse is overdue for new chairman’s axe

31 Mar 2021

The Swiss bank’s shares are down 23% in a month after Archegos and Greensill collapsed. Though losses are unclear, investors assign no worth to the investment bank. By shrinking that unit, and hiving off the fund and local divisions, António Horta-Osório could rescue some value.

Archegos takes shine off family office freebies

30 Mar 2021

By deeming itself a family office rather than an investment adviser, Bill Hwang’s hedge fund sidestepped many disclosure requirements. That might not have mattered to the culprit of its demise: opaque equity swaps. Still, it raises questions about bigwigs managing for themselves.

Hedge funds take third strike vs. U.S. watchdogs

29 Mar 2021

So far Archegos’ default hasn’t matched the systemic impact of other crises. But last year short-term funding stresses forced a U.S. government backstop. Then there was the GameStop roller coaster. The industry can only sustain so many misses before regulators say enough.

SpongeBob emerges from market chaos mostly intact

29 Mar 2021

ViacomCBS pocketed $3 bln by raising equity after a meteoric share-price rise, only to find itself at the center of a selloff triggered by hedge fund Archegos. The broadcaster’s shares are still up over 20% this year, but its next capital raising may not be so easy.