Why 82% of Federal-Mogul Isn’t Enough for Carl Icahn
In 2001, when Federal-Mogul was undergoing a Chapter 11 bankruptcy, Icahn had invested in $1.1 billion in the company’s convertible bonds.
Icahn believes that Hertz has good potential value, provided it enacts certain changes. The company is already going in for a split.
Bill Ackman, CEO of Pershing Square Capital Management LP, has been shorting Herbalife (HLF) since 2012.
According to Rodman & Renshaw’s Raghuram Selvaraju, Valeant’s underlying assets are not fairly valued by the market and the company is capable of making a turnaround.
In August 2015, VRX stock was at its historic peak of over $250. It is now below $25, as the stock has lost over 90% in the past year.
“Allergan has a great pipeline,” said Icahn. For Icahn, this healthcare sector (XLV) firm’s stock appears to be undervalued.
All major European indexes are showing nervousness ahead of the Brexit referendum. The global market is also waiting for the referendum results.
When the QE program ended, equities and the commodity market were regularly affected by the increased sentiment that there could be a rate hike.
The hedge fund industry has the most expensive money managers, and regulatory and distribution costs are increasing.
A high expense ratio with lower returns impacts the overall alpha of an actively managed fund.
In recent years, the performance of various mutual funds and hedge funds followed by an active fund management strategy haven’t been so impressive.
Laurence D. Fink of BlackRock expects consolidation in the hedge fund industry. In this series, we’ll explore Fink’s reasoning and look at the industry’s performance.
GLD has fallen 10.30% on a YTD (year-to-date) basis. Paulson remains the biggest investor in GLD. It’s the most popular ETF that bases its price on gold.
Nervousness stuck the gold markets, but John Paulson didn’t budge. He stuck with his holding in the biggest exchange-traded product backed by gold.
Billionaire hedge-fund manager John Paulson is one of the best-known gold bulls in the markets. The last time Paulson cut his gold holdings was in July.
Out of the total analysts surveyed by Bloomberg, 64.7% of analysts have a “buy” rating on American Airlines, ~35.3% of the analysts have a “hold” rating, and no analysts have a “sell” rating.
American Airlines’ traffic increased 5.0% YoY to 20.01 billion, and its carrying capacity increased by 2.7% to 24.30 billion.
American Airlines’ 2Q15 revenues fell by 4.6% YoY to $10.83 billion due to weakness in the company’s key markets. Analysts estimated that revenues would be ~$10.86 billion.
AAL trades at a price-to-earnings multiple of 5.16x, which is a considerable discount with its peer average and the S&P 500 multiples.
In 2Q15, most hedge funds that had significant exposure to American Airlines either lowered their stakes or kept their positions steady in the company. AAL’s shares lost approximately 26.5% in value.