JANA Partners has dropped its proxy fight with EQT
Corporation. The activist hedge fund firm headed by Barry
Rosenstein said in a regulatory filing that it will cease
soliciting proxy materials but still plans to vote against the
company’s acquisition of Rice Energy. JANA has maintained that
EQT’s shares are undervalued but that the best way
to address this situation is to break it into two separate
companies: exploration and production and midstream. It thinks
a merger would create less value than splitting. The vote for
the Rice deal is scheduled for Thursday, November 9.
On September 13, EQT announced that once the Rice deal
closes, it will create a board committee to research ways for
"addressing EQT’s sum-of-the-parts discount." It
said the committee with announce a recommendation by the end of
the first quarter of 2018. JANA said in its latest regulatory
filing that it may still pursue change at EQT’s
board "depending upon various factors, including the outcome"
of the board’s review of its sum-of-the-parts
discount and how it plans to act on it.
Marcato Capital Management filed a definitive proxy statement for the election of nine
individuals to the board of directors of Deckers Outdoor
Corporation. The San Francisco activist firm owns 8.4 percent
of the shares of the company best known for its UGGs brand.
"Deckers’ Board has failed its stockholders
repeatedly, over a multi-year period, and should not be trusted
to deliver on its goals," the hedge fund firm asserted in its
filing. The firm’s Marcato International fund is
up about 18.6 percent for the year through October, according
to an HSBC document that tracks hedge fund performance.
John Paulson posted another sharp loss in October. The
Schroder GAIA Paulson Merger Arbitrage fund, a UCITS fund
(undertakings for the collective investment of transferable
securities, a type of European mutual fund) offered on the
Schroder Investment Management platform, fell about 4.8 percent
last month and is now down nearly 19 percent for the year,
according to an HSBC document detailing hedge fund performance.
Although the fund only manages $125 million, a person with
knowledge of the fund confirms this performance is in line with
that of Paulson Partners, Paulson & Co.’s oldest
fund, which specializes in merger arbitrage.
Credit Suisse cut its price target on hedge fund
favorite Allergan from $243 to $224 but maintained its
outperform rating on the stock. The investment bank explained
in a note to clients that it is adjusting its sales and
earnings estimates following the drug company’s
third-quarter results. It says its "blue sky" valuation is
$284, while its "grey sky" valuation is closer to $158. "The
main risks to our call include disappointing commercial
performance for key products such as Botox, Juvederm and
Linzess, or disappointing data from pipeline assets such as the
oral CGRPs and abicipar," Credit Suisse stated in the note. At
the end of the second quarter, at least 84 hedge funds held a
position in the stock, including 23 that included the stock
among their top-ten holdings, according to Goldman