Tuesday, 21 October 2014
Last updated 7 hours ago
Jul 28 2014 | 11:45am ET
Greenlight Capital put its money-losing first quarter behind it in the second, no thanks to its short book.
The New York hedge fund returned 7.9% from April to June, erasing its first-quarter loss and leaving it up 6.4% this year, the firm told investors. Greenlight credited its investments in Apple Inc. and Micron Technology for the gains.
The hedge fund said that its short bet against Questcor Pharmaceuticals was the “only significant” negative in its portfolio—and it was significant indeed, with the company’s shares surging 42% after Mallinckrodt announced plans to buy the company.
“Takeover season has returned and in a new twist, the buyers’ stock prices are also advancing in response to announced deals, enabling companies, including some of our shorts, to see gains as acquirers—even of other troubled companies,” Greenlight wrote.
The hedge fund accused Mallinckrodt of “blowing smoke” over Questcor’s problems, and said that the buyer would become an attractive short itself should the deal go through.
Greenlight said it was also shorting grocery chain Safeway and Martin Marietta Materials, while adding a long bet on semiconductor company Lam Research Corp.
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 ...