This content is from: Portfolio

The Morning Brief: SAC Shuts Trading Unit, but Keeps Trading

SAC Capital Advisors is shutting down Parameter Capital, one of its trading units, according to Bloomberg. The three year-old firm, created by Anil Stevens and Glenn Shapiro to trade financial stocks, is now managing around $300 million. Stevens plans to start his own firm and take a number of people with him, but not Shapiro. Meanwhile, investing life goes on for SAC. On Monday the firm reported a 5.1 percent stake in Lin Media, which on July 30 completed its merger with LIN TV, and a 5.2 percent position in Sinclair Broadcast Group. Both investments were strictly passive, according to regulatory filings.

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Daniel Loeb is at it again. For the second time in a week or so the Third Point founder posted what appeared to be another jab at William Ackman on his Bloomberg profile. “Never interfere with an enemy when he is in the process of destroying himself,” read the quote on Loeb’s profile. Ackman’s Pershing Square Capital Management is taking a huge beating on its long position in J.C. Penney and its short position in Herbalife. Loeb has taken the opposite bet on both positions in the past.


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Office Depot and OfficeMax, which have agreed to merge, issued a joint press release Friday updating their search to find a chief executive to lead their combined company. The office supplies retailers said the goal is to have a permanent CEO in place by September. Shareholders of both companies have already agreed to the deal, which is expected to close by the end of the year. If it sounds a little bizarre that the companies would issue such a press release, keep in mind that OfficeDepot is the target of a proxy fight from activist hedge fund Starboard Value LP. Also, on Friday, proxy advisory firm Institutional Shareholder Services (ISS) recommended that Office Depot shareholders vote for three of Starboard’s four nominees — Cynthia Jamison, Starboard head Jeffrey Smith and Joseph S. Vassalluzz — at the upcoming annual meeting.

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Sometime-activist investment firm Elliott Associates, which owns 6.4 percent of Emulex, said in a regulatory filing that the networking company agreed to extend its stand-still agreement to September 20, 2013 and that the company would hold its annual meeting between November 21 and January 20. The company also agreed to make certain changes to its by-laws regarding when it can notify shareholders of its slate of directors at its annual meeting. Keep in mind that back in July, Starboard Value LP reported owning a 6.9 percent stake in the company.

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Stephen Mandel, Jr.’s Lone Pine Capital reported a 5.2 percent passive stake in apparel maker Michael Kors Holdings. It also reported a 7.3 percent stake in SolarWinds, which offers IT management software. Both disclosures were made Monday in separate 13G filings.

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