Keith Meister’s Corvex Management has reduced
its holding in Energen Corp. following an Alabama federal
district court ruling that went against the activist hedge
According to a January 3 filing with the Securities and Exchange
Commission, Corvex has trimmed its Energen stake to 9.9
percent, from 10.10 percent on September 14, selling 80,294
shares. The fund’s investment has gained more than
14 percent based on its average purchase price of less than $52
Corvex first took an activist stake in the company, which
has a market value of about $5.7 billion, in August, and
immediately began pushing for a change of board directors. The
hedge fund firm said it would call for a special
shareholders’ meeting if necessary. Energen sued,
and the court agreed with the company, saying in a November
ruling that Corvex could not call a special shareholder
meeting. Corvex said it would appeal the decision.
Bill Ackman, along with other senior members and advisors of
his Pershing Square Capital Management, plan to invest $300
million in Pershing Square Holdings, the firm’s
publicly traded hedge fund listed on the London and Amsterdam
stock exchanges. The fund, which trades at a steep discount to
its net asset value, jumped more than 3 percent on the news in
European trading Wednesday.
Ackman is buying the shares because he believes they are
undervalued, according to a January 2 statement from Pershing Square Holdings.
The purchase should "assist in reducing the discount to net
asset value at which PSH’s public shares currently
trade," the firm said. Before the announcement was made,
Pershing Square shares closed Tuesday at $13.67 on
London’s Euronext. That compares with the
fund’s NAV of $17.41.
Pershing Square is selling part of its stake in Howard
Hughes, the real estate company whose board Ackman chairs, to
help buy the Pershing Square shares. Although the European fund
will divest of Howard Hughes, Pershing Square will still own
5.1 percent of Howard Hughes’ common shares, and
its total economic interest through derivatives will be 17.9
percent, down from 23.4 percent today.
Pershing Square Holdings ended 2017 down 4 percent, its
third consecutive year of losses. The firm has $9.3 billion of
A former executive at Izzy Englander’s
Millennium Management will finally get to start his own hedge
fund, ExodusPoint Capital Management, according to a news report from Bloomberg. Michael
Gelband, the former head of credit at Millennium Management,
has resolved a hiring dispute with Englander, which will allow
him to open his own hedge fund, Bloomberg said, citing sources
familiar with the situation. Another former Millennium
executive, Hyung Soon Lee, who headed equities until October
2016, is a co-founder of the new firm.
A former top executive of Och-Ziff Capital Management has
been charged with fraud more than a year after
the firm pled guilty to bribing African officials. The U.S.
Attorney in Brooklyn filed the charges against Michael Cohen,
the former head of Och-Ziff’s European operations
who was in charge of the African business, according to an
indictment made public Wednesday. Cohen was charged with 10
counts, including conspiracy to commit investment adviser
fraud, wire fraud and obstruction of justice.
Och-Ziff and four executives, including Cohen, had been
previously charged by the SEC over corrupt practices in Africa.
Och-Ziff paid $412 million in U.S. criminal and regulatory
penalties, including a $213 million criminal fine, according to
a September 2016 statement from the Department of Justice.
Chief Executive Officer Daniel Och personally paid $2.2 million
to settle the SEC’s charges without admitting or