It’s August, things are slow, and I have a suspicion that Carl Icahn let his lawyers go on vacation and is just writing his two-sentence letters to CVR Energy himself. Bill Ackman, not so much:
To the Board of Directors of General Growth Properties:
… [eight pages] …
I look forward to speaking further with the Board about the above.
He even cc’s a lawyer.*
The saga here is long and winding; the letter actually explains it well or you could read this Reuters article but in sort-of brief:
- Pershing Square is the second-largest shareholder of GGP, with 7.7% of the company, or 10.2% on Ackman’s somewhat aggressive accounting**
- The largest holder is Brookfield Asset Management, with 38.2% plus warrants for 4% more.
- Pershing and Brookfield got their shares mostly in the process of helping GGP out of bankruptcy, which it was in due to some unpleasantness over some loans, but it’s doing great now thanks for asking.
- But keep in mind: Read more »
Citigroup’s private bank is pulling about $500 million from Paulson & Co., the hedge fund run by billionaire John Paulson seeking to reverse record losses in 2011, according to two people familiar with the matter. The private bank is redeeming from Paulson’s Advantage Fund and Advantage Plus Fund, said the people who asked not to be identified because the information is private…Citigroup’s private bank in May advised clients not to add money to the Paulson funds, a person familiar with the matter said at the time. [Bloomberg]
The next hedge fund manager to invest in Apple gets a horse semen pie to the face. Read more »
On Wednesday, Governor Dannel P. Malloy of Connecticut announced that the asset manager would be constructing a state-of-the-art facility along the Stamford waterfront as part of an economic and community development initiative. As part of the program, which will give the firm as much as $115 million in incentives as part of the deal, Bridgewater has also promised to add another 750 to 1,000 new high-level jobs to its current staff of 1,225…The new offices will have about 750,000 square feet spread across two eco-friendly buildings that will front the water in the Harbor Point development area. Bridgewater has promised to clean up the contaminated site and reforest the area, creating a park-like campus for its employees with public access. “We are pleased that the State of Connecticut shares our vision of creating a state of the art and environmentally sustainable office campus, while also restoring this key piece of natural waterfront property in Stamford,” Greg Jensen, co-chief executive of Bridgewater, said in a statement. “We look forward to transforming this industrial site into a spectacularly beautiful forested campus that will be seamlessly integrated into the natural surroundings. The proposed campus will house all of our employees and be designed to facilitate creativity, collaboration and help reinforce Bridgewater’s distinct culture which has been so instrumental to our success.” [Dealbook]
If he plays his cards right. Read more »
As has become a regular feature of his quarterly letters, Singer criticized the Obama administration, condemning the White House for proposed tax increases on the top tax bracket, and “its tone of hostility toward business, and boosting the unreviewable discretion of regulators.” For the hedge fund manager, who has been trading under the Elliott banner for 35 years, what he sees as the failings of the current U.S. administration are just one part of an increasingly complex web of global forces that are making the markets much harder to trade. “It is more difficult than ever to select ‘good’ First World investments based on careful financial analysis, fancy models, instinct or any other method,” Singer wrote. “Recommending shifts among bonds, which have almost no yield, highly volatile stocks and cash with zero yield is a thankless task.” [Reuters]
Ben Gifford ’10, the valedictorian of his class [at Dartmouth], left his job at Bridgewater Associates after a year and a half. The next day, he decided to open a San Francisco-based bakery called Double or Muffin, an idea he and his childhood friend and Double or Muffin co-founder Sean Pears conceived while they were at a coffee shop in their hometown of Newton, Mass., according to Gifford. “It was the summer after college graduation and we were waiting in line, making bad jokes, when one of us said ‘double or muffin,’” Gifford said. “It’s really unclear who said it first, and we kind of forgot about it initially, but before long we realized that there was an actual game you could play that corresponded pretty much perfectly with the pun. You would buy a muffin and flip a coin — heads you’d get a second muffin for free, tails you’d keep the muffin you already bought.” Gifford, who does not have any prior entrepreneurial experience, had planned on pursuing other career paths post-graduation. After being rejected from several teaching programs in Asia, Gifford subsequently joined Bridgewater Associates in May 2010. “I actually liked the company and the people a lot, and, as I had hoped, I learned a ton,” Gifford said. “But at the end of the day, I’m really just not that passionate about macroeconomics or financial markets.” [The Dartmouth]
June 22, 2012: “To ensure that I can focus intensely on in-depth company and industry analysis, I will adopt a much lower public profile and let my investment returns speak for themselves. Specifically, I will dramatically reduce my television appearances, interviews with the media, blogging/writing, and public speaking, both in the investment and philanthropic realms. I also plan to write letters to you quarterly rather than monthly (our bookkeeper will, course, continue to send you monthly statements).”
July 23, 2012: Read more »
We are writing to let you know that, after careful consideration, we have decided to cease managing money together and will instead do so independently, in the firm belief that in doing so our investors will benefit over time. The friendship and admiration we have for each other is unchanged, we will continue operating our funds, and you do not need to do anything. We are, however, modifying our structure: Whitney will become the sole principal of T2 Partners and its three primary hedge funds. Glenn will be establishing a new investment firm, Deerhaven Capital Management, that will independently manage the T2 SPAC Fund, which will be renamed the Deerhaven Fund and become his hedge fund vehicle…Whitney’s Plans: “To ensure that I can focus intensely on in-depth company and industry analysis, I will adopt a much lower public profile and let my investment returns speak for themselves. Specifically, I will dramatically reduce my television appearances, interviews with the media, blogging/writing, and public speaking, both in the investment and philanthropic realms. I also plan to write letters to you quarterly rather than monthly (our bookkeeper will, course, continue to send you monthly statements).” [T2 Letter]
Investors gave Bernie Madoff money because they trusted him. They gave Sam Israel money because they liked him—a gregarious, disarming goofball who, as a Wall Street apprentice, had invented an alter ego he called Captain Proton, a fearless superhero whose special powers were granted by vodka and cocaine. Now in his forties, he lived in a Westchester mansion, rented from Donald Trump for $22,000 a month, with an adjacent chapel in which he had built a replica of the Bayou trading floor alongside an 800-gallon saltwater fish tank and a menagerie of rare reptiles. He’d also installed a high-end studio for jam sessions, where he’d play with the Allman Brothers’ drummer when the band was in town. He owned a fleet of Porsches and signed personal checks printed with the image of SpongeBob SquarePants…Once he’d welcomed his family home from a short trip standing in the driveway wearing cowboy boots, his wife’s bikini underwear, a lacrosse helmet, swim goggles, a life jacket, and a cape, then started screaming at his wife when she didn’t get the joke. [NYM, related]
You are doing that aren’t you? Now you have no excuse if they’re not perfect:
Ms. Schapiro, in prepared testimony before a panel of the U.S. House oversight committee, said that the SEC would not meet a July 4 deadline set by Congress to complete the rules lifting the longstanding ban on publicizing private securities offerings.
She said the SEC’s work on this issue is more complicated than it would seem because Congress directed the SEC to require issuers of private offerings to take reasonable steps to verify that purchases are accredited investors.
So I’m excited to see your ads on Dealbreaker for which you will pay top dollar, but as I idly looked for the MAAX zips documentation today it occurred to me that there’s another interesting possibility in this rule change that could also redound to Dealbreaker’s benefit, which is that it might dramatically increase the amount of information out there on private offerings.
Right now companies in the U.S. – and for “companies” read “companies, hedge funds, structured credit vehicles, and other what-have-you” – offer their securities in one of two ways:
(1) publicly, and
(2) not. Read more »