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Sep 18, 2014

Alibaba cash could fund small spending spree at Yahoo

SAN FRANCISCO/BOSTON (Reuters) – Alibaba Group Holding Ltd’s upcoming public offering will give Yahoo Inc billions of dollars for a potential shopping spree that investors hope will jumpstart its comeback.

But with numerous holes to fill and soaring tech company valuations, Yahoo will have to make tough choices with any acquisitions.

Sep 17, 2014

Even funds sour on Russia stay sweet on Magnit

BOSTON/MOSCOW, Sept 17 (Reuters) – Would you believe one of
the West’s favorite Russian stocks is a provincial grocery
chain?

Western fund managers have stockpiled shares in Russia’s
largest food retailer, Magnit OAO, betting that it will
do better than other firms in Russia in the midst of trade
restrictions stemming from the conflict in Ukraine.

Sep 11, 2014

Some Dollar Tree investors see advantages if Family Dollar bid fails

BOSTON, Sept 11 (Reuters) – Some Dollar Tree Inc
investors are crossing their fingers the company doesn’t succeed
in its $8.5 billion takeover of Family Dollar Stores Inc
, saying it could expand and repurchase stock with the
$305 million breakup fee while avoiding all the risk of a major
acquisition.

The deal announced in July is now under threat after
similarly-named but larger rival, Dollar General Corp,
outbid it this week with a $9.1 billion hostile takeover
proposal. Dollar General had been rebuffed by Family Dollar on
previous offers but is seen as likely to win a protracted battle
this time.

Sep 9, 2014

Jack Ma, ‘capital-lite’ model impress at Alibaba’s Boston IPO event

BOSTON (Reuters) – Alibaba Group Holding Ltd has two major things going for it as it prepares for an initial public offering that could raise more than $21 billion: founder Jack Ma and a “capital-lite” business model.

While corporate governance remains a concern, several fund managers and analysts said Ma gave an impressive performance during the company’s pitch in Boston on Tuesday for what stands to be the largest-ever U.S. technology IPO. They also said the Chinese e-commerce company’s business model features strong cash-flow generation and low capital intensity similar to U.S. Internet stars Facebook Inc and Google Inc.

Sep 4, 2014

Some fund managers take shine to pricey solar stocks

BOSTON (Reuters) – Some notable fund managers are betting on solar energy shares, expecting a wave of industry consolidation and lower costs to pay off for the notoriously volatile industry.

The optimists, a mix of specialized environmental managers and mainstream investors, are going against several trends, since solar companies have already had a sizeable run-up this year and more fund managers have been selling the stocks than buying them.

Aug 7, 2014

Janus’ Kozlowski seeks stocks immune to market malaise

BOSTON (Reuters) – Concerned that trends in the economy may not help stock prices much, Janus Capital Group’s Dan Kozlowski is looking for companies that can help themselves.

As manager of the $4.2 billion Janus Contrarian Fund, Kozlowski has posted strong returns by buying companies that take transformative steps, like changing executives or going through mergers to get an edge in a slow-growth era.

Jul 29, 2014

Federated’s Bakhshian looks for stocks with pricing power

BOSTON (Reuters) – Federated Capital Income Fund CAPAX.O has made a bundle with optimistic bets since the financial crisis. The question now is how it can maintain its strong returns.

The answer is a stock-heavy portfolio padded with oil companies, banks and technology shares, according to co-manager Linda Bakhshian, who believes the economy is still improving and interest rates are poised to climb.

Jul 24, 2014

Asset manager Legg Mason to buy UK’s Martin Currie

By Neha Dimri and Ross Kerber

(Reuters) – Asset manager Legg Mason Inc LM.N said it would buy UK-based international equity specialist firm Martin Currie, continuing an effort to revamp its business.

Under Joseph Sullivan, who became CEO in February 2013, Legg Mason has sold several businesses, created new products and bought other small investment firms as it tries to move beyond a long period of net quarterly withdrawals by customers.

Jul 23, 2014

Money fund rule changes offer new reality to U.S. retail investors

BOSTON, July 23 (Reuters) – New rules announced on Wednesday
will likely drive safety-oriented retail investors away from
some money market funds because they highlight risks and make it
harder to pull cash out when market turmoil strikes.

The U.S. Securities and Exchange Commission’s reform will
force institutional “prime” money market funds to float their
share price, a major change from the current convention that
allows them to maintain a stable $1 per share net asset value.
The new rules also would allow money funds to impose fees and
restrictions on withdrawals during times of extreme market
stress.

Jul 21, 2014

Cautious on stocks, ClearBridge’s Bauman sits on $1 billion

BOSTON (Reuters) – What do you do with $1 billion in extra cash? For Evan Bauman, one of America’s top performing fund managers, the answer is simple: nothing for now.

“The broad market is not cheap anymore,” Bauman, co-manager of the ClearBridge Aggressive Growth Fund said, referring to a stock market that has hit several record highs in recent months, and which the Federal Reserve warned last week was overvalued in parts.

    • About Ross

      "I cover mutual funds and the companies that offer them including Fidelity Investments and Legg Mason Inc, plus related topics like retirement savings issues and socially responsible investing. I'm based in Boston and joined Reuters in 2009."
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