Shane's Feed
Apr 23, 2014
via Counterparties

A new wrinkle in activism

Hedge fund managers are getting back in the innovation game — or at least Bill Ackman is. Yesterday, Ackman announced that he and Valeant Pharmaceuticals were making a $50 billion hostile bid for Allergan, the maker of Botox. Ackman also announced that his hedge fund owns a 9.7% stake in Allergan. Allergan quickly did what the targets of hostile takeovers do and adopted a poison pill to keep any unapproved investor from owning more than 10% of its shares.

Steven Davidoff says the bid shows that activist investors are becoming “a ready arsenal of capital that can be used to aid hostile takeovers by corporations”. Valeant itself, Breakingviews’ Robert Cyran and Richard Beales say, “is essentially the creation of an activist hedge fund, ValueAct Capital, which set it on the path of serial deal-making”.

Apr 23, 2014
via Counterparties

A new wrinkle in activism

Hedge fund managers are getting back in the innovation game — or at least Bill Ackman is. Yesterday, Ackman announced that he and Valeant Pharmaceuticals were making a $50 billion hostile bid for Allergan, the maker of Botox. Ackman also announced that his hedge fund owns a 9.7% stake in Allergan. Allergan quickly did what the targets of hostile takeovers do and adopted a poison pill to keep any unapproved investor from owning more than 10% of its shares.

Steven Davidoff says the bid shows that activist investors are becoming “a ready arsenal of capital that can be used to aid hostile takeovers by corporations”. Valeant itself, Breakingviews’ Robert Cyran and Richard Beales say, “is essentially the creation of an activist hedge fund, ValueAct Capital, which set it on the path of serial deal-making”.

Apr 23, 2014
via Counterparties

A new wrinkle in activism

Hedge fund managers are getting back in the innovation game — or at least Bill Ackman is. Yesterday, Ackman announced that he and Valeant Pharmaceuticals were making a $50 billion hostile bid for Allergan, the maker of Botox. Ackman also announced that his hedge fund owns a 9.7% stake in Allergan. Allergan quickly did what the targets of hostile takeovers do and adopted a poison pill to keep any unapproved investor from owning more than 10% of its shares.

Steven Davidoff says the bid shows that activist investors are becoming “a ready arsenal of capital that can be used to aid hostile takeovers by corporations”. Valeant itself, Breakingviews’ Robert Cyran and Richard Beales say, “is essentially the creation of an activist hedge fund, ValueAct Capital, which set it on the path of serial deal-making”.

Apr 23, 2014
via Counterparties

A new wrinkle in activism

Hedge fund managers are getting back in the innovation game — or at least Bill Ackman is. Yesterday, Ackman announced that he and Valeant Pharmaceuticals were making a $50 billion hostile bid for Allergan, the maker of Botox. Ackman also announced that his hedge fund owns a 9.7% stake in Allergan. Allergan quickly did what the targets of hostile takeovers do and adopted a poison pill to keep any unapproved investor from owning more than 10% of its shares.

Steven Davidoff says the bid shows that activist investors are becoming “a ready arsenal of capital that can be used to aid hostile takeovers by corporations”. Valeant itself, Breakingviews’ Robert Cyran and Richard Beales say, “is essentially the creation of an activist hedge fund, ValueAct Capital, which set it on the path of serial deal-making”.

Apr 23, 2014
via Counterparties

A new wrinkle in activism

Hedge fund managers are getting back in the innovation game — or at least Bill Ackman is. Yesterday, Ackman announced that he and Valeant Pharmaceuticals were making a $50 billion hostile bid for Allergan, the maker of Botox. Ackman also announced that his hedge fund owns a 9.7% stake in Allergan. Allergan quickly did what the targets of hostile takeovers do and adopted a poison pill to keep any unapproved investor from owning more than 10% of its shares.

Steven Davidoff says the bid shows that activist investors are becoming “a ready arsenal of capital that can be used to aid hostile takeovers by corporations”. Valeant itself, Breakingviews’ Robert Cyran and Richard Beales say, “is essentially the creation of an activist hedge fund, ValueAct Capital, which set it on the path of serial deal-making”.

Apr 23, 2014
via Counterparties

A new wrinkle in activism

Hedge fund managers are getting back in the innovation game — or at least Bill Ackman is. Yesterday, Ackman announced that he and Valeant Pharmaceuticals were making a $50 billion hostile bid for Allergan, the maker of Botox. Ackman also announced that his hedge fund owns a 9.7% stake in Allergan. Allergan quickly did what the targets of hostile takeovers do and adopted a poison pill to keep any unapproved investor from owning more than 10% of its shares.

Steven Davidoff says the bid shows that activist investors are becoming “a ready arsenal of capital that can be used to aid hostile takeovers by corporations”. Valeant itself, Breakingviews’ Robert Cyran and Richard Beales say, “is essentially the creation of an activist hedge fund, ValueAct Capital, which set it on the path of serial deal-making”.

Apr 23, 2014
via Counterparties

A new wrinkle in activism

Hedge fund managers are getting back in the innovation game — or at least Bill Ackman is. Yesterday, Ackman announced that he and Valeant Pharmaceuticals were making a $50 billion hostile bid for Allergan, the maker of Botox. Ackman also announced that his hedge fund owns a 9.7% stake in Allergan. Allergan quickly did what the targets of hostile takeovers do and adopted a poison pill to keep any unapproved investor from owning more than 10% of its shares.

Steven Davidoff says the bid shows that activist investors are becoming “a ready arsenal of capital that can be used to aid hostile takeovers by corporations”. Valeant itself, Breakingviews’ Robert Cyran and Richard Beales say, “is essentially the creation of an activist hedge fund, ValueAct Capital, which set it on the path of serial deal-making”.

Apr 22, 2014
via Counterparties

The Swedish model

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Until about six months ago, Sweden was routinely trotted out as an example of a modeleconomy (not least by Sweden itself). But now it’s time to start talking about Swedish deflation. In March, the economy’s consumer prices were down was down 0.6% from the previous March, following a -0.2% CPI inflation rate in February. CPI inflation has been hovering around zero since November 2012.

The Swedish economy has been locked in an epic hawk/dove battle for more than three years. Between 2010 and 2011, the central bank increased interest rates to 2% from 0.25%. It quickly began lowering rates again in fall 2011, most recently cutting the rate to 0.75% from 1% (where it had been for a year) in December. The central bank wrote in its April report that it expects to keep rates unchanged for the next year, as “inflation has been weaker than expected for some time”.

Apr 16, 2014
via Counterparties

The housing density is too damn low

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Your rent really is too damn high.

Kim-Mai Cutler has a long, detailed explainer on San Francisco’s real estate crisis inTechCrunch. To begin with, she says, there’s just not enough supply: “San Francisco has a roughly 35% homeownership rate. Then 172,000 units of the city’s 376,940 housing units are under rent control”, a number equal to a remarkable 75% of the city’s rental units. That doesn’t leave much for the rental market. As a result, any rents which can rise, will rise. (Marc Andreessen notes that tech has been driving up prices in the area for at least 30 years, and population boom cycles have been part of the city’s history since the Gold Rush.)

Tech companies keep creating jobs in San Francisco and Silicon Valley without building more housing to accommodate the extra workers. As computer programmers flood in to the existing housing stock, the working class is pushed out completely. A big part of this problem, says Ryan Avent, is San Francisco’s restrictive zoning requirements. The city’s longtime residents are very good at keeping new construction out of their backyard. “However altruistic they perceive their mission to be, the result is similar to what you’d get if fat cat industrialists lobbied the government to drive their competition out of business”, he writes.

Apr 16, 2014
via Counterparties

The housing density is too damn low

Want to sign up for the Counterparties email? Click here.

Your rent really is too damn high.

Kim-Mai Cutler has a long, detailed explainer on San Francisco’s real estate crisis inTechCrunch. To begin with, she says, there’s just not enough supply: “San Francisco has a roughly 35% homeownership rate. Then 172,000 units of the city’s 376,940 housing units are under rent control”, a number equal to a remarkable 75% of the city’s rental units. That doesn’t leave much for the rental market. As a result, any rents which can rise, will rise. (Marc Andreessen notes that tech has been driving up prices in the area for at least 30 years, and population boom cycles have been part of the city’s history since the Gold Rush.)

Tech companies keep creating jobs in San Francisco and Silicon Valley without building more housing to accommodate the extra workers. As computer programmers flood in to the existing housing stock, the working class is pushed out completely. A big part of this problem, says Ryan Avent, is San Francisco’s restrictive zoning requirements. The city’s longtime residents are very good at keeping new construction out of their backyard. “However altruistic they perceive their mission to be, the result is similar to what you’d get if fat cat industrialists lobbied the government to drive their competition out of business”, he writes.