Wednesday, 22 October 2014
Last updated 11 min ago
Aug 19 2008 | 12:56pm ET
Activist hedge fund Pershing Square Capital Management has hired private equity giant The Blackstone Group to help it fight a proposed drug store tie-up.
Pershing Square, run by William Ackman, has charged Blackstone with helping it drive up the purchase price of Longs Drug Stores Corp., which it owns an 8.8% stake in. Last week, rival CVS Caremark Corp. agreed to pay $2.6 billion for Longs, but the New York hedge fund reportedly believes that Longs’ real-estate holdings make it worth much more.
In addition to its stake in Longs, Pershing Square owns swaps that bring its total economic interest in Longs to 25.8% of shares outstanding.
According to The Wall Street Journal, a real-estate investor approached the hedge fund claiming it could make more by selling the unwanted Longs sites than CVS could, a prospect which would make Longs significantly more valuable. The investor told Pershing Square that it could try to work out a more lucrative bid for Longs from rival chain Walgreen Co.
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 ...