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The Morning Brief: Lone Pine Analyst Starts Fund with Backing from Mandel
Another Tiger Grandcub is born. Ran Li, a senior analyst at Stephen Mandel Jr.’s Greenwich, Connecticut-based Lone Pine Capital, is launching a new hedge fund in London, according to Reuters. The new fund, Half Sky Capital, is expected to get underway with about $110 million, including some backing from Li’s mentor. The long-short equity fund is expected to start trading in about six months, according to the report. Mandel is considered a Tiger Cub because he earlier worked for Julian Robertson’s Tiger Management. Li is considered a Tiger Grandcub after having worked for Mandel.
Consulting giant Cliffwater has recommended that Rhode Island’s state pension fund redeem its $35 million investment from Christian Leone’s Luxor Capital Partners, according to Reuters. Cliffwater cited losses at the $4 billion fund, noting it has underperformed due to “poor investment selection and inadequate hedging,” according to the report. Luxor reportedly posted an average 18.3 percent annual loss from March 2014 through February 2016. The pension plan had allocated $50 million to the hedge fund firm in 2014. It is expected to get back $35 million by June 30, according to the report.
Shares of SunEdison fell another 14.8 percent to close at $1.27, just one penny above its all-time low amid concerns it may wind up filing for bankruptcy. According to a St. Louis Business Journal report, SunEdison is in discussions with creditors about a possible debtor-in-possession facility. If the renewable energy company’s stock falls below one dollar for a prolonged period of time it would face a possible delisting from the New York Stock Exchange.
Valeant Pharmaceuticals International extended its rally to three days, gaining nearly 5 percent. It is now up nearly 23 percent over this period.
William Ackman’s Pershing Square Capital Management is now down 25.2 percent for the year through March 22.