P&G scores hollow victory over Nelson Peltz 10 Oct 2017 The $234 bln toiletries firm says the activist has lost his fight for a board seat. Peltz says the vote is too close to call. Either way, the narrow margin should be a wake-up call for P&G’s insular leaders, even if change comes hard for them. Expect Peltz to stick around.
Cox: P&G counting on an investor electoral college 6 Oct 2017 There's no strong reason for the insular consumer-goods titan to deny Nelson Peltz a board seat. Hedge funds will back him, but as in U.S. elections only half the retail shares may vote. That leaves Vanguard, BlackRock and State Street to play Wisconsin, Ohio and Pennsylvania.
Fidelity apes hedge funds to play active defence 3 Oct 2017 The asset manager’s UK offshoot will charge clients more when funds beat their benchmarks and less when they underperform. The risk is that fees become more opaque. Yet a variation on alternative managers’ “2-and-20” model may help it resist the onslaught from cheap trackers.
Retailer puts huge discount on activist overreach 25 Sep 2017 Two hedge funds want to oust Tuesday Morning’s Steven Becker, a fellow pushy investor who ended up as CEO. The home-furnishing chain’s stock has fallen 62 pct on his watch - a reminder that having smart financial ideas doesn’t mean activists make good corporate chieftains.
Options hurt Bill Ackman’s cause at ADP 20 Sep 2017 The pushy hedge-fund boss owns most of his 8.3 pct stake in the $50 bln payroll processor with derivatives. It's a common ploy, but Ackman's plan is lackluster and investors can pick from plenty of activist campaigns. His choice of securities only makes it harder to gain support.
EU aims torpedo at asset managers’ Brexit defence 19 Sep 2017 Europe’s market regulator may be given new powers to prevent national watchdogs from turning a blind eye to funds that outsource jobs to the UK in the hope of luring business to their shores. London-based funds could face more upheaval than expected after Britain leaves the EU.
Review: Dalio writes ultimate baby boomer’s guide 15 Sep 2017 The Bridgewater founder is true to his generation. He wants you to decide what you want and help you get it. To that end he offers his life and work principles – all 525 of them. It's a bid for immortality, like the algorithm he's designing to run his $160 bln hedge fund.
D.E. Shaw’s rare activist shot falls short at EQT 14 Sep 2017 The hedge fund is calling for a breakup of the natural-gas company, echoing Jana Partners. Yet it’s content to let the company first buy Rice Energy for $6.7 bln despite the deal’s flaws. It’s an unconvincing foray into activism for a fund better known for computerized trading.
Viewsroom: Ray Dalio taps his inner communist 14 Sep 2017 Bridgewater’s founder thinks his kindred spirit resides in China’s anti-corruption czar Wang Qishan. Both seek radical transparency – though Dalio’s hunt is tied to forging a business in the Middle Kingdom. Plus: Exxon’s salvation may lie in the oil fields of West Texas.
What’s with Ray Dalio’s Wang Qishan obsession? 12 Sep 2017 The Bridgewater billionaire says he gets "closer to cracking the unifying code that unlocks the laws of the universe" when he speaks with the anti-corruption czar of China's Communist Party. The odd confession may offer insight into Dalio's ardor for investing in China.
Elliott takes activist-buyout firm fight to Japan 11 Sep 2017 The two Wall Street tribes are increasingly at odds. Now Elliott has bought into a $3 bln Hitachi unit that KKR covets, presumably seeking a better price. For private equity groups, mining Japan’s promising seam of corporate carve-outs may be about to get a little bit harder.
Elliott’s Stada shakedown is cheeky but rational 31 Aug 2017 The hedge fund wants the private equity firms buying drugmaker Stada to pay 74.40 euros for its minority stake. That’s nearly 50 pct above the firm’s value before Bain and Cinven began bidding. Yet Elliott has a point: the buyers could pay up and still make a respectable return.
Deutsche sets tone for painful analyst price war 24 Aug 2017 Deutsche Bank has halved the going rate for its fixed-income research, which clients must soon pay for separately under new European rules. Banks may have to give even more ground. Buyers will only get more demanding – and may want to pick which boffins they really need.
Elliott finds part-victory in Akzo defeat 16 Aug 2017 The U.S. activist failed to arm-twist the Dulux paint maker into a merger with PPG. The Dutch group has, though, committed to a full breakup and put two solid new members on the board. It’s a decent result for Akzo’s investors – although less than Elliott’s might have wanted.
Akzo and Elliott are trapped in a lose-lose battle 11 Aug 2017 The Dutch paint maker has won a legal victory over its biggest shareholder, which is trying to oust the chairman. The increasingly pointless fight is likely to drag on beyond September’s shareholder meeting unless new CEO Thierry Vanlancker can make both sides see sense.
Guy Hands’ return is a new test of buyout fever 9 Aug 2017 The financier whose dire EMI deal coincided with the top of the last boom is raising funds. Terra Firma has evolved since 2007 and scored some big wins. Still, strong backing for such a controversial figure would show how hungry yield-starved investors are for alternative assets.
Man Group’s growth push comes at a cost 1 Aug 2017 The UK fund manager’s assets under management leapt to $96 bln as it bought businesses and raised funds. Man’s broad range of business helps it resist some of the pressure from passive products. Even so, margins are falling. Active managers have to keep working harder.
Firing Mooch solves sliver of White House problem 31 Jul 2017 New Chief of Staff John Kelly ousted financier Anthony Scaramucci as communications supremo. It’s a good first step in reining in the chaotic U.S. presidency. But the bigger task for the retired general is disciplining America’s CEO, Donald Trump. That battle may not be winnable.
ADP owners cash checks from Pied Piper Bill Ackman 27 Jul 2017 The $50 bln payroll processor's stock shot up 11 pct after Bloomberg reported the hedge-fund manager had built a stake. Neither Ackman's high-profile stumbles nor the middling performance of activists broadly proved a deterrent. Following blindly is a dubious investment strategy.
India’s pesticide kings have fertile base for M&A 25 Jul 2017 UPL may bid more than $4 bln for part of Platform Specialty, the U.S. group backed by Bill Ackman's hedge fund, Reuters says. While overseas deals have led many Indian companies astray, a trim balance sheet and a solid deal-making history offer a chance to rewrite the record.