Keith Meister’s Corvex Management disclosed that it owns 7 percent of Fidelity National Financial, which provides title insurance and other mortgage services. Corvex, which disclosed its stake in a 13D filing, said it owns more than 2.8 million shares of stock and more than 14.6 million shares of underlying call options. The options reference nearly 8.2 million shares, which have an exercise price of $15 per share and expire on August 29, 2014, and more than 6.4 million shares with an exercise price of $16 per share that expire on October 31, 2014.
In the filing Corvex said the shares are undervalued and are an attractive investment. It also said it supports the company’s announced acquisition of Lender Processing Services and an associated equity offering, which will turn Fidelity into a leading real estate services and technology company. The hedge fund also stated it has had, and may continue to have, discussions about “business and strategies” with management and the board of directors, adding it is “pleased with their conversations.” Meister previously worked for Carl Icahn.
—
Tiger Global, the New York-based hedge fund and private equity firm founded by Charles (Chase) Coleman, raised its stake in children’s clothing maker Carter’s to more than 5.65 million shares, from 4 million at the end of June, bringing its stake in the company to 10.4 percent. The passive stake was taken on October 24, the day shares of the company slumped 8 percent after reporting disappointing earnings.
—
American International Group reported earnings above the consensus forecast, while revenues disappointed analysts. As a result, the stock slumped in after-hours trading. The stock, which is up about 46 percent this year so far, had the most number of hedge funds counting it among their top-10 holdings at the end of the second quarter.
—
Credit Suisse trimmed its price target on Facebook — one of the hottest stocks hedge funds have eschewed this year — to $59 from $61 and maintained its Neutral rating on the stock, even though results came in above its expectations on Thursday. The investment bank cited, in part, its outlook for desktop revenue growth for its lower price target.
—
Two former analysts of Jim Chanos’s Kynikos Associates have launched a hedge fund that will specialize in short selling. London-based The Arhammar Short Alpha Fund, co-managed by Mike Monnelly and David Bonnier, started on Oct. 10 and is backed by Baltic banking giant SEB AB.
