Post Market Update
Carlson Capital's Black Diamond Arbitrage Partners fund added 1.3% net fees in the first quarter of 2021, according to a copy of the firm's March 2021 investor update, which ValueWalk has been able to review. Q1 2021 hedge fund letters, conferences and more At the end of the quarter, merger arbitrage investments represented 89% of Read More
- US: Dow: 12820.60 (-0.27%), S&P 500: 1353.39 (-0.34%), NASDAQ: 2933.82 (0.01%)
- Europe: CAC: 3129.77 (-0.01%), DAX: 6579.93 (0.94%), FTSE: 5575.52 (0.57%).
- Asia-Pacific: Australia: 4285.10 (-0.24%), China: 2394.98 (-0.64%), Hong Kong: 19964.63 (-1.32%), India: 4928.90 (-0.74%), Japan: 8953.31 (-0.63%).
- Metals: Gold: 1584.00 (-0.72%), Silver: 28.89 (-0.99%), Copper: 3.65 (-1.15%)
- Energy: Crude Oil: 96.13 (-0.98%), Natural Gas: 2.51 (0.88%)
- Commodities: Corn: 5.81 (-1.11%), Soya Bean: 13.21 (-2.78%), Wheat: 5.97 (-0.71%)
- Currency: Euro (€) / US Dollar ($) (EURUSD): 1.2918 (0.10%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.6071 (0.38%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 79.9350 (0.06%)
- 10 year US Treasury: 1.839% (-0.028)
Market and Economy News Update
U.S. markets ends lower: U.S. markets fell amid news of JPMorgan Chase & Co. (NYSE:JPM)‘s surprise trading loss and ongoing worries over the euro zone debt crisis. The Dow Jones Industrial Average (INDEXDJX:.DJI) slipped 0.27 percent to close at 12,820.60, to cap the biggest weekly retreat of the years. The S&P 500 (INDEXSP:.INX) erased 0.34 percent, to finish at 1,353.39, a two-month low, while the NASDAQ Composite (INDEXNASDAQ:.IXIC) ended the day flat.
U.S. consumer sentiment at four-year high: U.S. consumer sentiment in May rose to its highest level in more than four years, as more people felt confident about the economy. The Thomson Reuters/University of Michigan preliminary sentiment index for May increased to 77.8, the highest level since January 2008, from 76.4 in April. Analysts were expecting it to drop to 76.2.
Oil prices drop:Oil prices dropped to a 2012 low after weak Chinese industrial growth data raised investor concerns about reduced fuel consumption. Crude oil for June delivery fell 0.98 percent, to settle at $96.13 a barrel on the New York Mercantile Exchange. Brent oil for June settlement fell 0.4 percent, to $112.26 a barrel on the London-based ICE Futures Europe exchange.
Company News Update
- World’s largest social network, Facebook Inc, which is expected to begin trading on May 18, has seen its record initial public offering being already oversubscribed, according to a Reuters report.
- Chipmaker Nvidia Corporation (NASDAQ:NVDA) reported first quarter revenue of $924.9, and forecast second quarter revenue of $990 million to $1.05 billion, that topped estimates.
- Jay Hoag, a director at Netflix, Inc. (NASDAQ:NFLX) bought 200,000 shares of the video streaming and DVD rental company.
- Reuters reported that LinkedIn Corporation (NASDAQ:LNKD) and private equity firm Silver Lake Partners are among a number of parties that have expressed interest in a potential acquisition of online job-search site Monster Worldwide, Inc. (NYSE:MWW).
- Chesapeake Energy Corporation (NYSE:CHK)’s planned $14 billion in asset sales may get delayed, according to the filling. In 46 minutes, after the late-filing notice was made public, Chesapeake’s market cap lost $1.05 billion dollars, as shares fell from $16.39 to their $14.81 closing price. durring the trading day, the stock dropped 14%.
- Not to be outdone, JPMorgan Chase & Co. (NYSE:JPM) lost $15 billion of market cap with the stock falling 9% in trading today, after the firm disclosed a $2 billion loss related to synthetic derivatives, which could have to do with the infamous ‘London Whale.’
- AVG Technologies NV (NYSE:AVG), the provider of antivirus and Internet security products, reported a 37 percent rise in first quarter revenue to $83 million, beating analysts’ estimates, and boosted its full year sales forecast.
- Ignite Restaurant Group, Inc. (IRG), the owner of the Joe’s Crab Shack seafood chain, closed sharply higher in its market debut, after raising $81 million in an initial public offering.
- Greenway Medical Technologies, Inc. (NYSE:GWAY), the provider of electronic health record applications, posted a 52 percent jump in fiscal third quarter revenue to $32.9 million, topping street expectations.
- Wave Systems Corp. (NASDAQ:WAVX) reported a first-quarter loss of 9 cents per share that trailed analysts estimated. Total net revenue stood at $7.0 million, compared with $7.5 million in same quarter last year.
- Prolor Biotech, Inc. (NYSEAMEX:PBTH), the clinical-stage biopharmaceutical company, said it priced an offering of 6.5 million shares at $5 each, a 12 percent discount to yesterday’s closing price.
Hedge Fund News Update
- Data from Hedge Fund Research shows hedge funds investing in emerging Asian markets gained 7.4 percent in the first quarter of 2012, their best start since 2006.
- London-based Edoma Partners, the hedge fund run by legendry Goldman Sachs Group, Inc. (NYSE:GS) trader, Pierre-Henri Flamand, has been lagging behind rivals this year after missing out on a rally in stock and bond markets. Edoma fund, the $1.8 billion event-driven fund, was down 0.85 percent at the end of the first quarter, with the average fund in the sector up 4.84 percent during the same period. https://www.valuewalk.com/2012/05/former-goldman-star-sees-hedge-fund-miss-the-mark-in-q1/
- The month of April saw hedge fund net inflows increase 1.24 percent, according to the GlobeOp Capital Movement Index, which tracks the monthly net of hedge fund subscriptions and redemptions administered by GlobeOp.
- Nate Singer, the former analyst at asset manager Farallon Capital Management, and a recent Harvard Business School graduate, will launch his first hedge fund in July. His San Francisco-based Angel Island Partners is looking to open with about $50 million in assets for its Public Equities Fund, a long/short equity offering.
- · Scottish fund management group Martin Currie has been fined a total of $14 million by the U.S. Securities and Exchange Commission and the United Kingdom’s Financial Services Authority (FSA), for manipulating one of its US fund clients to rescue another client.
- Alp Ercil, Perry Capital’s former Asia head has raised more than $400 million for his new hedge fund, which will invest in distressed debt and equities in the Asia-Pacific region.
Brokerage Upgrades and Downgrades on Friday, May 11, 2012
- AT&T Inc. (NYSE:T) was upgraded to “outperform” from “neutral” at Credit Suisse.
- AMC Networks Inc (NASDAQ:AMCX) was raised to “buy” from “hold” at Stifel Nicolaus with a target price of $48.
- McDermott International (NYSE:MDR) was upgraded to “buy” from “hold” at BB&T Capital Mkts.
- MYR Group Inc. (NASDAQ:MYRG) was raised to “buy” from “hold” at BB&T Capital Mkts.
- Stantec Inc. (USA) (NYSE:STN) was upgraded to “outperform” from “market perform” at BMO Capital Markets with a target price of $35.
- Verizon Communications Inc. (NYSE:VZ) was raised to “outperform” from “neutral” at Credit Suisse.