The Morning Brief: SAC Managers Bolt for Millennium
SAC Capital Advisors employees continue to jump from what seems to be a sinking ship. At least three investment professionals have left Steve Cohen’s Stamford, Connecticut-based hedge fund firm for Israel “Izzy” Englander’s New York City multistrategy firm, Millennium Partners. They include Alexey Chentsov, who will work as a portfolio manager focused on quantitative investments in foreign exchange and fixed income, and Santiago Falconi, now a portfolio manager at Millennium. They will be working for Andres Anker, who left SAC in March 2012 for Millennium after spending nearly 10 years at SAC.
China has given six major hedge fund firms the go-ahead to raise money there and invest it abroad. The firms are Man Group, Winton Capital Management, Oak Tree, Citadel, Och-Ziff Capital Management Group and Canyon Partners. Each fund was given a $50 million quota.
Tiger Cub Tiger Consumer Management raised its stake in teen retailer Aéropostale by more than 80 percent since the end of the second quarter, to more than 6.4 million shares. The New York City firm, founded by Patrick McCormack, now owns 8.21 percent of the stock. This is the first time McCormack has filed an initial 13G in nearly two years.
General Growth Properties said it spent $567 million to purchase more than 28 million shares for the average price of $20. This included 25 million shares bought from William Ackman’s Pershing Square Capital Management. General Growth is one of Ackman’s most successful investments. He made his initial investment in the mall operator during the 2008 commercial real estate debacle, held his stake through the company’s bankruptcy and teamed up with Brookfield Asset Management to prevent it from being acquired by Simon Property Group. Earlier in the year it was reported that Pershing Square had made 77 times its money on the investment, including spinoffs and dividends.
Steven Roth, chairman of the board and chief executive of Vornado Realty Trust, resigned from the board of directors of embattled retailer J.C. Penney. Vornado, which earlier this year was the second largest shareholder before unloading 10 million shares at $16.40 apiece, still owns 799,000 shares.