Hong Kong’s Hang Seng Hits Five-Year Low [WSJ]
Some key stock indexes in mainland China also fell to their lowest levels in more than a year, after a weekend meeting of China’s legislature failed to ease investor concerns about the regulatory outlook for the country’s beleaguered technology and property sectors…. After recouping some losses early this year, the Hang Seng fell back into negative territory in late February as Russia’s invasion of Ukraine rattled investors and the city struggled to battle its biggest Covid-19 wave. Monday’s fall, to 21057.63, took the index’s year-to-date losses to 10% and means it is about 2% lower now than it was a decade ago, FactSet data shows.
Activist investor Carl Icahn exits Occidental Petroleum after nearly three years -WSJ [Reuters via Nasdaq]
Icahn, who had been cutting the position, in recent days sold the remainder of it, the report said, adding the activist investor's two representatives on Occidental's board are also resigning…. Icahn has been waging a bitter battle with Occidental's board over its $38 billion acquisition of Anadarko Petroleum since 2019, calling it a misplaced bet based on expectations of higher oil prices.
Bed Bath & Beyond stock soars 65 percent as activist investor takes stake [N.Y. Post]
Cohen, the chairman of video game retailer GameStop and the co-founder of online pet store Chewy, bought a piece of the domestic merchandise chain through his investment firm, RC Ventures.
In a letter to the Bed Bath & Beyond board, Cohen blasted the company’s performance under the leadership of CEO Mark Tritton.
Spacs tap alternative funds in desperate hunt for cash [FT]
Companies desperate to go public and stem redemptions are turning to investors including alternative asset manager Atalaya Capital Management and private equity group Apollo for so-called redemption capital, where the funds agree to buy shares from investors that are looking to withdraw their money…. “It’s a sign of desperation. It’s problematic because it’s pretty hard for anyone but pretty sophisticated investors to understand what’s going on in these transactions and to see how sweet a deal is being offered to select investors,” said Michael Ohlrogge, professor at New York university’s law school who studies Spacs.
Vista’s Robert Smith Had Bigger Role in Alleged Tax Fraud Than Previously Known, Documents Show [WSJ]
Mr. Smith played a key role in a 2004 deal nicknamed “Project Hotrod” that was designed to allow Texas billionaire Robert Brockman to avoid U.S. taxes while transferring $635 million from his main U.S. holding company into his offshore entities, according to internal memos and other deal documents filed by the Internal Revenue Service in U.S. District Court in Houston as part of a civil dispute with Mr. Brockman…. Mr. Smith isn’t a party to the court dispute, but the documents show that he was involved in the planning of the transaction and that a Cayman Islands entity named Vista Equity Fund III LP facilitated the transaction. He personally signed the deal-closing documents on behalf of that entity, the documents show.
UK must borrow to improve ‘depressing’ growth outlook, says hedge fund boss [FT]
[Caxton Associates’ Andrew Law] said the government should aim to lift productivity by making “targeted investment” in skills and education, funded by the current low cost of long-term borrowing…. “We’ve spent £400bn through Covid, but we are scared to have a long-term investment programme of even £10bn, financed at negative rates, to build a better future for the youth of today? That is the only long term solution to boost productivity nationwide,” he added.