Thank you, Donald. This is what The New York Times
and its shareholders are saying these days, especially after
its stock jumped more than 10 percent on Thursday, to close at
$24.38, after the owner of the iconic Gray Lady announced that
subscription revenue now exceeds $1 billion and accounts for 60
percent of total revenue of $1.7 billion. The company has
enjoyed a surge in business since the presidential campaign and
election of Donald Trump, who has a love-hate relationship with
The New York Times. He regularly calls it
"failing" but then has agreed to on-the-record — and
some suspect off-the-record — interviews. The stock,
meanwhile, has more than doubled since October 1, 2016. This is
good news for several hedge fund managers, including Anand
Desai’s Darsana Capital Partners, the
fourth-largest shareholder. The stock is also the largest U.S.
long of JHL Capital Group.
Bill Ackman’s Pershing Square Holdings
fell into another hole. The activist firm’s public
fund lost 5.6 percent in the first four trading days of
February, through February 6. It was flat in January. Through
Thursday, shares of Restaurant Brands International, Pershing
Square Capital Management’s largest long holding,
were down more than 7 percent. ADP, the second-largest long, is
down nearly 7 percent for the year, while Chipotle Mexican
Grill is down nearly 8 percent for the year.
January may very well go down as the euphoria
before the collapse…or volatility surge. The HFRI Fund
Weighted Composite Index gained 2.8 percent last month, the
best monthly performance since December 2010, according to HFR.
It was also the best January since 2006. As a result, the HFR
index has now posted gains for 15 consecutive months.
January performance was led by macro strategies.
The HFRI Macro (Total) Index rose 3.7 percent, its best monthly
gain since February 2008. Quantitative, trend-following CTA
strategies also performed very well, led by the HFRI Macro:
Systematic Diversified Index, which surged 4.8 percent, the
strongest return since October 2008. The HFRI Macro:
Discretionary Thematic Index returned 3.6 percent, while the
HFR Macro: Multi-Strategy Index gained 3.4 percent. The HFRI
Equity Hedge (Total) Index advancing was up 3 percent, led by
technology and emerging markets, according to HFR.
Short-selling favorite Tesla Motors Thursday fell
8.6 percent, to close at $315.23, following its earnings
release the previous day. Although investors had initially
reacted positively, Wall Street was less impressed. Several
investment banks repeated their sell recommendations Thursday
and retained price targets that are well below the current
stock price. A cynical Barclays said in a note Thursday that
while it reiterated its $210 price target and underweight
rating, "we are not holding our breath for a deserved
pullback." Well, for one day, there was a pullback.