Bill Ackman Facing Redemption, Longfin Selling Restricted Stocks

1
Bill Ackman Facing Redemption, Longfin Selling Restricted Stocks

Bill Ackman’s Pershing Square Capital Management is facing a wave of investor redemptions after the activist hedge fund suffered from three years of disappointing performance, The Wall Street Journal reported Thursday. Longtime stakeholder Blackstone Group has been withdrawing capital, while JPMorgan Chase’s asset management unit is no longer recommending clients invest in the fund. In the first quarter of 2018, Pershing Square’s total assets declined by 12% to $8.2 billion, compared to $20 billion in 2015. According to people familiar with the matter, Ackman still has confidence in his portfolio and believes its performance will improve going forward. The activist does not plan to replace the departing money, trying instead to position Pershing Square as a smaller fund that is able to make larger bets.

Get Our Activist Investing Case Study!

Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!

See 2017 Hedge Fund Letters.

Exclusive: Dan Loeb’s Two New Stock Picks [Q1 Letter]

Nestle Dan Loeb Daniel Loeb third point capital hedge fund manager activist investor poison pen activism Yahoo corporate governance famous investorsThird 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


What we'll be watching for this week

  • Will shareholders of Keweenaw Land Association vote in favor of Cornwall Capital Management’s three-person slate at the timber company’s annual meeting Thursday?
  • Will activist investor Starboard Value nominate a majority slate for election to the board of real estate investment trust Macerich?
  • Will shareholders of General Electric heed the advice of proxy advisory firms Institutional Shareholder Services and Glass Lewis and vote against auditor KPMG at the industrial giant's annual meeting?

Activist shorts update

The U.S. Securities and Exchange Commission (SEC) has accused Longfin executives of illegally selling restricted stock. The SEC said Friday that it obtained a court order to freeze the proceeds from the sale, which amounted to $27 million in profits. Longfin’s shares recently skyrocketed in value after the company acquired a blockchain company.

Short seller White Diamond targeted Longfin in mid-March, claiming the company’s market capitalization did not reflect its true value due to hype surrounding its cryptocurrency venture. Almost two weeks later, Citron Research tweeted that LongFin's filings and press releases were "riddled with inaccuracies and fraud."

Shares in Longfin hit lows of $8.11 last week, plummeting 81.5%, but later rallied to $28.19 when it was halted for volatility on Friday at 11:30 a.m. EDT. CEO Venkat Meenavalli said Wednesday that he planned to write to the SEC and the Financial Industry Regulatory Authority about the behavior of short sellers, who he blamed for the collapse of the company’s stock.

To arrange an online demonstration of Activist Insight Shorts, email us or view our product brochure to find out more.

Article by Activist Insight

Previous article Achaogen Inc. (AKAO) Buy With Robert Duggan?
Next article Cryptocurrency Quiz – Testing Your Knowledge
Financial news and data providers Activist Insight and Proxy Insight announced in October 2020 that they had merged to form Insightia, a leader in the field of public company information. Activist Insight was formed in 2012 and offers an extensive range of products including Activist Insight Online, Activist Insight Governance, Activist Insight Vulnerability, Activist Insight Shorts, Activist Insight Monthly magazine, and The Activist Insight Podcast. Proxy Insight has quickly become the world’s leading source of information on global shareholder voting, covering such hot topics as director and auditor elections, “say on pay” resolutions and environmental, social, and governance (ESG) proposals.

No posts to display