Pershing Square

13-F Summary: Who Bought And Sold What In The Fourth Quarter

Yesterday's barrage of 13F releases showed that hedge funds like Third Point, Eton Park and Blue Ridge piled into shares of major banks, David Tepper's Appaloosa jumped into the pharma sector starting new positions in Teva, Pfizer and Mylan while Buffett aggressively added to airline steaks and nearly quadrupled his Apple position to $7.7 billion. Here is a full breakdown of who bought what in the fourth quarter.

Bill Ackman Reveals Two New "Undisclosed" Positions Taking up 13% Of Capital

In the past, news of Ackman entering a new position would usually send its price higher. However in light of Ackman's abysmal performance in 2015 and 2016, there was some cynical speculation that the market would immediately fade any new Ackman positions. It appears Bill decided not to risk finding out if this was true.

Ackman's Pershing Square Busted For Violating Pay-To-Play Rule; Fined $75,000

Following a disappointing year for Bill Ackman, in which his Pershing Square returned -13.5%, moments ago Ackman got some bad and some good news. The bad news is the Pershing Square was among 10 investment advisory firms who were busted by the SEC for engaging in pay-to-play schemes, or accepting pension fund fees within two years of making donations. The good news: the penalty is a whopping $75,000.

Outflows From Active Funds Surpass A Record $200 Billion

Over the last several years, we have observed an accelerating trend of flows out of active funds and into passive vehicles. Price sensitivity of investors to fees, coupled with poor performance trends, have conspired against active funds, and year-to-date flows out of active have reached a post-crisis high. As of this moment, the outflows from active funds have surpassed $200 billion: an all time high.

Perry Capital Shutting Down His Iconic Flagship Fund

The writing was on the wall three weeks ago when we reported that iconic hedge fund Perry Capital had lost some 60% of his AUM as LPs were rushing to withdraw their money.  So it is probably not very surprising that having lost more than half his assets moments ago Bloomberg reported that Perry's flagship fund is shutting down: PERRY CAPITAL TO CLOSE FLAGSHIP FUND AFTER ALMOST THREE DECADES

Iconic Hedge Fund Perry Capital Loses 60% Of AUM As Investors Flee

The hedge fund run by Goldman alum Richard Perry, has lost more than half of its assets in less than a year after posting declines since 2014.Perry's assets slumped to $4 billion as of the end of August compared with $10 billion in September last year. The reason for the tremendous outflows is that Perry has posted losses of 18.4% from the beginning of 2014 through July of this year.

Frontrunning: September 7

  • Trump and Clinton look to pass U.S. commander-in-chief test (Reuters)
  • Undecided GOP-Leaning Voters Provide an Opening for Donald Trump (WSJ)
  • Stage set for iPhone 7, but many await 8 (Reuters)
  • Dollar Slides Versus Yen as Prospect of September Fed Hike Dims (BBG)
  • World stocks hit one-year highs as Fed hike prospects fade (Reuters)
  • Merkel strikes back, defends migrant policy after election rout (Reuters)

Chipotle Soars After Bill Ackman Reveals 9.9% Stake, Goes Activist

Many thought that having been squeezed between the terrible performance of his Valeant long and his Herbalife short, that Bill Ackman would quietly fade into the sunset. No such luck, and as he revealed moments ago in a 13D filing, the Pershing Square founder has just gone activist on Chipotle, revealing a 9.9% stake, announcing he is "intend to engage in discussions" with management and the board.

What Hedge Funds Bought And Sold In Q2: The Full 13-F Summary

Today is the deadline for hedge funds to submit their Q2 13-F filings. Among the more notable changes was the previously reported 55% increase in Warren Buffett's Apple shares, offset by the cut in his Wal-Mart stake; Elliott's addition to stakes in security firms Qualys, Fortinet, CyberArk; ValueAct's new stakes in Morgan Stanley, Seagate; Tiger's exit of Netflix; Jana addition of Time Inc, and Soros' cut of his gold miner positions.

Frontrunning: August 4

  • Bank of England cuts rates for first time since 2009, restarts bond purchases (Reuters)
  • Obama administration denies Iran cash payment was a ransom (Reuters)
  • Mike Pence Endorses Paul Ryan After Donald Trump’s Refusal (WSJ)
  • In slap at Trump, some wealthy Republicans campaign for Clinton (Reuters)
  • Clinton leads Trump by 17 points in NH (The Hill)

S&P Futures Flat As Europe, Asia Lifted By Banks, Yen; All Eyes On The Bank Of England

In a mostly quiet session, European and Asian stocks rose, pushed higher by financial stocks and the USDJPY which initially dipped on some hawkish comments by BOJ deputy governor Iwata, only to rebound later in the session, lifting the Nikkei 1.1%, while the Stoxx 600 rose 0.4% led higher by the banking sector. S&P futures are unchnaged after yesterday's last hour ramp. The key event is the BOE decision due in half an hour.

Largest US Pension Fund Suffers Worst Annual Return Since Financial Crisis Due To Heavy Stock Losses

While we have often documented the dramatic underperformance by the hedge fund industry over the past decade, today we learn that "vanilla" asset managers were also hurt over the past year in which the S&P went nowhere. Case in point: Calpers, the largest U.S. public pension fund which as the WSJ reports posted its lowest annual gain since the last financial crisis due to heavy losses in stocks.