Michael Price, president of MFP Investors LLC, talks about the outlook for the stock market and investment strategy. He speaks with Tom Keene, Sara Eisen and Scarlet Fu on Bloomberg Television’s “Surveillance. Michael Price is Seth Klarman’s mentor and rarely speaks, so whenever Price does its a treat. Price likes Hess Corp. (NYSE:HESS) and explains ‘the three stages’ of a proxy fight and how it applies here (Hess is involved in a proxy war with Elliott Management). He thinks that MLPs and some other asset classes may be in the bubble zone. Price says that he used to own Dell but sold it at a loss, calling the purchase a mistake. However, he thinks that Michael Dell Inc. (NASDAQ:DELL) has made a mistake in the way he is dealing with the LBO.
Price says Apple is not even close to the price he would consider looking at it. Additionally, he states that MFP has taken some tax losses on J.C. Penney Company, Inc. (NYSE:JCP). He says that the thesis for JCP equity was flawed, but bought bonds recently. When asked if Bill Ackman should get more involved with JCP, Price responds that Ackman has his hands pretty full right now.
Price notes that he is not a short-seller, but has looked at Chesapeake Energy Corporation (NYSE:CHK) and the capital structure and thinks that it is in bad shape. Price is bearish on natural gas and is shorting CHK. He called Herbalife Ltd. (NYSE:HLF) ‘theatre’ and refused to discuss it further.
Third Point's Dan Loeb discusses their new positions in a letter to investor reviewed by ValueWalk. Stay tuned for more coverage. Loeb notes some new purchases as follows: Third Point’s investment in Grab is an excellent example of our ability to “lifecycle invest” by being a thought and financial partner from growth capital stages to Read More
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