This content is from: Portfolio

The Morning Brief: Mathew Martoma to Start Prison Sentence on Thursday

Former SAC Capital manager Mathew Martoma will begin his nine-year prison term on Thursday, according to USA Today. He must report by 2 p.m. on November 20, according to the report, citing a one-sentence ruling. Manhattan U.S. District Judge Paul Gardephe recommended that Martoma serve his sentence in a prison in Miami so that Martoma’s wife and children can visit him more easily since they live in Florida. Martoma was convicted in February of conspiracy and securities fraud in connection with the government’s insider trading probe.
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It looks like the folks at Zoetis got the memo. One day after Botox maker Allergan agreed to be acquired by Actavis, the board of Zoetis, an animal health company, authorized a $500 million share repurchase program. This is one of many moves activist hedge fund firms like to urge their targets to take. Of course, many observers think one such firm, William Ackman’s Pershing Square Capital Management, will now train its crosshairs on Zoetis. Ackman, the largest shareholder of Allergan, said last week that he built an 8.5 percent activist stake in Zoetis, while Sachem Head Capital Management, headed by former Pershing Square partner Scott Ferguson, owned a little less than 1 percent of the shares.

Meanwhile, Ackman said he will withdraw his request for an Allergan special shareholder meeting. “We congratulate Actavis and Allergan on their announced transaction,” Ackman said in a statement. “As a result of the deal, we are withdrawing our special meeting request.”

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D.E. Shaw & Co. disclosed that it owns 5.1 percent of Liberty TripAdvisor Holdings, the company that was spun off in August from Liberty Interactive Corporation. The company consists of 22 percent of the stock of online travel company TripAdvisor, which represents a 57 percent voting interest, and 100 percent of BuySeasons, an online retailer of party supplies and costumes. The hedge fund’s investment is passive.

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Larry Robbins’ Glenview Capital Management said in a regulatory filing that it boosted its stake in Teradyne by about 50 percent, to nearly 12 million shares, or 5.53 percent of the outstanding shares of the supplier of automatic test equipment.

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Steven Cohen’s family office Point72 Asset Management said owns 5.1 percent of RCS Capital Corporation, a holding company that offers securities brokerage, investment banking and securities record-keeping services.

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