Billionaire Paul Singer: China Crash Is ‘Way Bigger Than Subprime’ – Bloomberg Business 07-15-15

Salient to Investors:

Paul Singer at Elliott Management said China’s debt-fueled stock market crash is way bigger than the US subprime mortgage crisis but may not be enough to cause a global financial market meltdown.

Bill Ackman at Pershing Square Capital Mgmt said China is a bigger global threat than Greece by far, their stock market looks worse than the US in 2007, and China’s lack of transparency and questionable economic statistics are concerning.

Jeffrey Gundlach at DoubleLine Capital said China’s stock market compares with the US Nasdaq in 1999, 2000, and is far too volatile and murky to invest in.

Mary Erdoes at JPMorgan Asset Mgmt said China’s equities markets are completely disassociated with their economy. 25 years of 7 percent growth seen by no other country, including the US.

Read the full article at http://www.bloomberg.com/news/articles/2015-07-15/billionaire-ackman-sees-china-stocks-as-worse-than-u-s-in-2007

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You Too Can Clone Bill Ackman Without Buying His New Fund – Bloomberg 09-22-14

Salient to Investors:

  • Armen Karamanian at Admire Capital said you can replicate Bill Ackman’s portfolio very easily and for free and with immediate liquidity without the headline risk, and Ackman’s focus on a small number of large investments makes Pershing Square easier to replicate. Karamanian said the public hedge funds’ target buyers are European money managers, probably wealth managers, allocating capital for individuals who invest outside the US and are not wealthy enough to buy into the hedge funds directly or get exposure to activists.
  • Bill Ackman said the first day rise in the stock price of an activist target often represents only a small percentage of the ultimate increase achieved by a successful activist – in 26 out of 30 of his activist commitments the day-after price was still a bargain price versus the ultimate price achieved from our involvement with a company.
  • Hedge Fund Research said hedge funds globally charged an average management fee of 1.52% in Q2 2014 and an average incentive fee of 17.96%. Since inception in 2004, Ackman’s Pershing Square LP’s gross return was 1,199.1% but 626.7% net of all fees.
  • Ken Squire at 13D Activist Fund said Ackman’s public stock allows another whole part of the investment world to get access to activism.
  • Chris Donegan at Azure Wealth said public hedge funds provide certainty of capital and for investors a higher degree of transparency and benefits from the manager’s ability to take measured actions without regard to redemption periods. The hedge fund manager likes no panic redemptions or providing liquidity to the market.

Read the full article at http://www.bloomberg.com/news/2014-09-22/you-too-can-clone-bill-ackman-without-buying-his-new-fund.html

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Activists Beat S&P 500 in 48 Percent Gain for Shareholders – Bloomberg 03-14-14

Salient to Investors:

  • Corporate activists including Carl Icahn, Bill Ackman and Nelson Peltz targeted 81 US companies with market values exceeding $1 billion between 1/2009 and 12/31/2013, generating a 48% average gain for long-term investors versus 31% for the  S&P 500.

Read the full article at http://www.bloomberg.com/infographics/2014-03-31/activists-beat-s-p-500-in-48-percent-gain-for-shareholders.html

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