Wednesday, March 20, 2013
Bill Ackman's Pershing Square is out with their latest iteration on the epic Herbalife (NYSE:HLF) short battle. In this short presentation they comapre Herbalife to Fortune Hi-Tech Marketing. Hat tip to Marketfolly for posting the presentation. Enjoy. Pershing-Square-Herbalife-Comparison
Tuesday, March 19, 2013
Bloomberg Game Changers came out with a nice documentary on Warren Buffett. While its nothing new - it is well put together. For the Buffett fans out there its more of the kool-aid you love. Enjoy.
Monday, March 18, 2013
Kyle Bass of Hayman Capital Partners recently gave a presentation at the University of Chicago's Booth School of Business. To view the presentation please click here. Austan Goolsbee gives an interesting intro to Kyle Bass where he talks about how they first met. The presentation is his tried and true speech on why Japan is the most mis-priced option in the world. Overall its pretty interesting and always good to get updated thinking from one of the smarter (as of late) macro investors out there. Enjoy.
Thursday, March 14, 2013
Howard Marks of Oaktree Capital Management is out with his latest memo to clients entitled, "The Outlook for Equities". He was recently profiled in Barron's where they called him the Guru to the Stars (mainly citing that many money managers read his memos with great interest - Buffett, Klarman, Greenblatt, Davis, etc.). In this memo he lays out the popular arugment of in relation to debt equities don't look that bad (especially when comparing earnings yields to yield on fixed income). He then gives some data on mutual fund flows and allocations to equities overall. Basically he thinks we are midway through a bull market in equities (as opposed the later innings on the fixed income market). Enjoy.
Thursday, March 7, 2013
Howard Marks, of Oaktree game, gave a presentation at the University of Oxford's Private Equity Forum earlier this week. He mentions how he fears the "unsound practices" from before the financial crisis (aka the 2007 era buyout boom) are creeping back into credit markets, with private equity firms bidding increasingly high prices for companies. He then went on to point out the ease with which lowly rated companies were issuing debt this year, how companies were paying out record dividends to their shareholders and the increasingly high debt-to-equity multiples private equity firms were paying for companies amid a resurgence in deals. He emboldened his call to proceed with caution.
A Vanity Fair article just came out that discusses Bill Ackman and his Herbalife campaign. There is lots of useful background info such as his fall out with David Einhorn, his fall out with Daniel Loeb, or even his spat with Carl Icahn. While it is a bit gossipy, its still fun to read these type of things every now and again. Enjoy. http://www.vanityfair.com/business/2013/04/bill-ackman-dan-loeb-herbalife
Tuesday, March 5, 2013
Stanley Druckenmiller continues his press tour and warnings about the pending doom from current fiscal policies. In this panel Stanley debates along with Home Depot founder Ken Langone, Geoffrey Canada (social activist and educator), and Kevin Warsh (Former Federal Reserve Governer). In the video they talk about how Bernanke is running the show and is continuing to provide extraordinary monetary accomodation until the labor market improves. The real question is the economy is not showing good growth so there is no end to QE and as a result they will continue to push liquidity into the system. The thought that the exit will not be easy and ordinary so that is what is particularly scary. Stan Druckenmiller points to the sell-off of QE1 and QE2 so the sell-off when its finally clearly over will be huge.
Jeff Gundlach of DoubleLine Capital gave a presentation today covering his view of the economy and where we are headed. The presentation entitled, "The Big Easy" is a comment of the Fed's QE infinity policy measures. In the webcast he disclosed they are now bullish on treasuries and have increased their allocation there accordingly. Additionally, he made some brief comments on Apple and said while he doesn't have a real position on them he thinks they are probably oversold at this point (this is after nailing it on when to short them back in the fall). Enjoy.
Philippe Laffont, founder of Coatue Capital Management, was on Bloomberg TV yesterday talking about investment strategy for the technology industry. For those of you not familiar with Philippe (you should be he is an incredibly savvy tech investor), he was at Tiger Management with Julian Robertson and has routinely made the list for highest paid hedge fund managers due to his stellar returns. Today his fund has around $6B under management. In the video he talks about Apple, CBS, Google, and other big names tech stocks. I particularly like how he describes his investment process - needing to look out into the future in order to see how the tide is turning and that is how he searches for value. Enjoy.
Friday, March 1, 2013
Duquesne Capital Founder Stanley Druckenmiller was on Bloomberg TV today to discuss his views on the economy, the demographic bubble and U.S politics. It is a really interesting interview with a very smart guy. He basically makes a big outline of how the fundamentals of the market and the economy will cause significant damage in the not too distant future. He thinks the upcoming calamity will be bigger than 2008. He is really focusing on the demographic and fiscal imbalances of our economy and how that will trickle down and punish the markets. He goes on to say that he thinks equities are not cheap. We have a 9% deficit to GDP and if you normalize margins and demands the S&P is not that cheap. They are cheap relative to bonds but that is a terrible comparison. Overall the interview is quite enjoyable and well worth watching. Enjoy.