Nelson Peltz’s Trian Fund Management sold more than 1.22 million shares of Legg Mason, a long-time holding, from early April through May 27 in a price range from roughly $53 to $55 a share. The New York activist now owns about 11 million shares, or 9.96 percent of the money management firm, remaining the largest shareholder. O. Andreas Halvorsen’s Greenwich, Connecticut-based Viking Global Investors owns 2.32 percent of the shares, ranking it among the top-10 shareholders.
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Boaz Weinstein’s Saba Capital Offshore Fund is enjoying a strong May, posting a gain of about 1.76 percent in the first half of the month alone. As a result, the New York credit relative-value fund is up 3 percent after losing money in each of the previous three years. He made his only appearance on the Rich List when he earned $100 million in 2011, ranking No. 25.
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Typical Wall Street’s sell-side. One day after shares of Michael Kors plummeted 24 percent, Deutsche Bank slashes its price target on the stock. Geez! This would have been great advice before the disappointing earnings report was disclosed. The investment bank cuts its price target from $85 to $60 but maintained its Buy rating. In a note to clients, it cited valuation, low expectations, a still-strong long-term global story and buyback support.
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Shares of Herbalife closed at $51.72, its highest closing price since early November. The multi-level marketer of nutrition and health products, the target of a sizable short by William Ackman’s Pershing Square Capital Management, is up about 38 percent in the calendar year alone.
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Appaloosa Management’s David Tepper is apparently getting into the seeding business. The Short Hills, New Jersey manager is backing the launch of Warlander Asset Management by Eric Cole, a former Appaloosa partner, which will focus on global credit, according to Bloomberg. Warlander is Tepper’s first seed investment, says Bloomberg, even though he has backed the launch of funds of other former employees at Appaloosa. Alex Ginzburg, a partner at MatlinPatterson Global Advisers, will join the new firm as head of research. The new firm will be based in New York.>
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New Jersey’s State Investment Council is withdrawing about $284 million from BlueCrest Capital International, the macro fund managed by Michael Platt’s London-based BlueCrest Capital Management, according to Bloomberg. Chris McDonough, director of the state investment division, said at a meeting that the fund’s performance was “disappointing,” according to the report. The pension fund initially invested $200 million with BlueCrest in 2012 and added $100 million last year. The pension fund said it will give additional money to Brevan Howard Asset Management, Claren Road Asset Management, MKP Capital Management and Scopia Capital Management, Bloomberg said. BlueCrest Capital International was off 3.5 percent for the first four months of the year.
