Tuesday, 21 October 2014
Last updated 2 min ago
Jan 3 2013 | 11:18am ET
Pershing Square Capital Management is ending its fight over mall owner General Growth Properties.
The New York-based activist hedge fund has agreed to go passive, part of deal that saw it sell warrants to buy more than 18 million GGP shares to Brookfield Asset Management, GGP's largest shareholder and Pershing Square's one-time ally turned rival. Brookfield paid about $271.9 million for the warrants, which grant the right to buy GGP shares at less than half their current value.
Pershing Square also agreed to keep its stake below 10% for at least four years, and rescinded its call for GGP to explore a sale. In return, Brookfield, which led a reorganization of GGP with Pershing Square's backing in 2010, has agreed to ownership limits; in addition to seeking a sale, Pershing Square had warned against Brookfield's taking "de facto" control over GGP.
Brookfield owns more than 40% of GGP's shares, but has agreed to a 45% cap and to limit its right to vote shares in excess of 38.2% of GGP's common stock.
Pershing Square, GGP's second-largest shareholder, owns about 8% of the company's shares. The hedge fund said it was satisfied with GGP's board.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...