Appaloosa Management’s David Tepper is still pretty bullish on the market. Speaking on CNBC, Tepper said he expects the price-to-earnings multiple to rise to the 18 to 20 range, which should help to propel stocks. The Short Hills, New Jersey-based hedge fund manager, who was recently inducted into Alpha’s Hedge Fund Hall of Fame, also expects the U.S. government to continue its aggressive stimulus measures, asserting: “They’re not tapering for a long time now.” However, he thinks a default on the debt could have a long-term effect on the country, its reputation and investor trust of Treasuries. He also all but called Ted Cruz an idiot, without saying so explicitly.
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The Credit Suisse Hedge Fund Index rose 1.27 percent in September, bringing the gain for the first three quarters of the year to 5.35 percent. The best performing sub-strategy was long-short equity, up 10.74 percent year-to-date, followed closely by event driven, up 10.17 percent. Dedicated short bias lost 5.52 percent in September and 21.92 percent for the first nine months.
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Shares of Green Mountain Coffee Roasters slumped 4.58 percent, to $65.69, on Tuesday after Greenlight Capital’s David Einhorn reportedly told investors in his third quarter letter that he is adding to his short position in the stock. The stock is now down 26 percent from its high in late August but is still up 58 percent in the calendar year.
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Steve Cohen’s SAC Capital Advisors disclosed it owns a 5.2 percent passive stake in Arrowhead Research, a clinical stage therapeutics company.
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Pine River Capital Management reduced its stake in Anworth Mortgage Asset Corporation, a mortgage-finance real estate investment trust (REIT), by 4 million shares, to 5.14 million shares, leaving it with just 3.6 percent of the shares outstanding. Separately, the hedge fund firm also disclosed that it owns a 5.3 percent stake in Camelot Information Systems, a provider of enterprise application services and financial industry information technology services in China. On September 18, the company agreed to be acquired by Camelot Employee Scheme Inc., its parent, for $98.2 million. The position was disclosed in a 13D filing.
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Shares of Eastman Chemical jumped 1.37 percent, on more than double its average daily volume, after our article yesterday making the case for Jana taking an activist position in the stock spread around the Internet.
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Shares of Yahoo initially surged more than 4 percent in after hours trading after the company reported quarterly earnings that beat consensus forecasts. However, the stock lost most of its gains after the company provided disappointing guidance.
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Ricky Sandler’s Eminence Capital nearly doubled its stake in car retailer Group 1 Automotive to 5.4 percent of the shares outstanding since the end of the second quarter. It was reported as a passive position.