Bridgewater Associates (Raymond Dalio) discloses updated portfolio positions in 13F filing: New GE MO PFE positions; exited BAC WFC JPM MS USB SCHW HBAN
Highlights from 2020 Q1 filing as compared to Q4 2019:
- New positions in: GE (~0.17 mln shares), MO (~0.1 mln), PFE (~0.08 mln), KO (~0.08 mln), BMY (~0.07 mln), PM (~0.07 mln), KHC (~0.07 mln), MDLZ (~0.06 mln), ABT (~0.05 mln), TJX (~0.05 mln)
- Increased positions in: LOW (to ~0.1 mln shares from ~0.06 mln shares), NIO (to ~0.08 mln from ~0.04 mln), PBR (to ~0.2 mln from ~0.16 mln), ZTO (to ~0.06 mln from ~0.03 mln), HD (to ~0.05 mln from ~0.03 mln), PDD (to ~0.14 mln from ~0.13 mln), IQ (to ~0.05 mln from ~0.04 mln) BBBY (to ~0.04 mln from ~0.03 mln), SHW (to ~0.02 mln from ~0.01 mln), ORLY (to ~0.02 mln from ~0.01 mln)
- Maintained positions in: IAU (~11.68 mln shares), GLD (~4.06 mln)
- Closed positions in: BAC (from ~1.88 mln shares), WFC (from ~0.88 mln), JPM (from ~0.65 mln), C (from ~0.45 mln), MS (from ~0.34 mln), USB (from ~0.33 mln), SCHW (from ~0.27 mln), HBAN (from ~0.21 mln), KEY (from ~0.2 mln), RF (from ~0.2 mln)
- Decreased positions in: SNAP (to ~0.03 mln shares from ~0.32 mln shares), F (to ~0.34 mln from ~0.55 mln), ZNGA (to ~0.02 mln from ~0.22 mln), WY (to ~0.02 mln from ~0.17 mln), FAST (to ~0.01 mln from ~0.13 mln), ODP (to ~0.01 mln from ~0.13 mln), LUV (to ~0.01 mln from ~0.12 mln), MGM (to ~0.01 mln from ~0.12 mln), CCO (to ~0.01 mln from ~0.11 mln), KGC (to ~0.55 mln from ~0.64 mln)
>>> Up
* Consus Real Estate Raised to Buy at H&A, PT EU8.50 (+)
* Costain Raised to Buy at Stifel; PT 95 pence (+)
* Engie Raised to Overweight at Morgan Stanley; PT 12 euros
* Informa Raised to Buy at Goldman; PT 515 pence
* Jungheinrich Raised to Buy at Hauck & Aufhaeuser; PT 22 euros (+)
* Kingfisher Raised to Hold at SocGen; PT 174 pence
* Rathbone Brothers Raised to Buy at Canaccord; PT 1,846 pence
* Stroeer PT Raised to 60 euros from 47.50 euros at Barclays
* Talgo Raised to Outperform at BBVA; PT 6.30 euros
>>> Down
* Banco BPM Cut to Hold at HSBC; PT 1.13 euros
* Banco Santander Cut to Hold at HSBC; PT 2.30 euros
* BBVA Cut to Hold at HSBC; PT 3.10 euros
* BPER Banca Cut to Hold at HSBC; PT 2.40 euros
* CompuGroup Cut to Reduce at Baader Helvea; PT 67 euros
* FirstGroup Cut to Sector Perform at RBC; PT 65 pence (+)
* Genfit ADRs Cut to Neutral at B Riley FBR, Inc.; PT $9
* Kongsberg Cut to Hold at Arctic Securities; PT 164 kroner
* Mitchells & Butlers PT Cut to 300 pence at Liberum (+)
* Nexity Cut to Reduce at AlphaValue
* Stroeer Cut to Neutral at Citi; PT 65 euros
* TeamViewer Cut to Hold at Commerzbank; PT 45 euros (+)
* ThyssenKrupp Cut to Sell at LBBW; PT 3 euros
>>> Initiation
* Coloplast ADRs Rated New Outperform at Bernstein; PT $16
* Medigene Rated New Buy at MainFirst; PT 10 euros
>>> Call
* *EUROPE CONSUMER DISCRETIONARY RAISED TO MARKET WEIGHT: BARCLAYS
* *EUROPEAN AUTOS SECTOR UPGRADED TO MARKET WEIGHT AT BARCLAYS
* Danone’s Long-Term Gross Margin Risk Is Priced In, Citi Says
* Expect Oversold Engie to Stage a Trading Rally : Morgan Stanley
* IHG Gets Street-Low Price Target at Citi on Recovery Outlook
* Informa Raised to Buy at Goldman, Shares Attractively Valued
* JCDecaux Organic Growth Slightly Ahead on Transport: Goldman (+)
* Stroeer Downgraded as V-Shaped Recovery Already in Price: Citi
* Volvo’s Decision to Scrap Dividend Not Overly Concerning: Citi
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TUI (TUI1 TH) +5.3%
- TUI Plans 8,000 Job Cuts to Adapt to Shrunken Travel Market
-
Ryanair (RY4C TH) +2.5%
- Ryanair’s O’Leary Calls U.K. Quarantine Nonsense, Plans Restart
- HelloFresh (HFG TH) +2.3%
- MTU Aero (MTX TH) -2.1%
- MTU Aero at Conference Call Hosted By Danske Bank Today
- Zalando (ZAL TH) -2.2%
- Infineon (IFX TH) -2.2%
- Siemens Healthineers (SHL TH) -2.4%
- Puma (PUM TH) -2.5%
- MorphoSys (MOR TH) -2.7%
- AstraZeneca (ZEG TH) -3.3%
- ASML (ASME TH) -3.3%
-
ABN AMRO (AB2 TH) -7%
- ABN Amro Posts First Loss Since 2013 as Virus Provisions Jump
- AMS (DQW1 TH) -7.4%
- Plans to raise additional capital
DAX:
- Lufthansa (LHA TH) -0.5%
- Lufthansa Bailout Sparks Debate in Government About Direct Stake
- Allianz (ALV TH) -0.7%
- Fresenius SE (FRE TH) -0.8%
- Deutsche Bank (DBK TH) -1.8%
- Deutsche Bank Resumes Job Cuts as Bosses Forgo A Month’s Pay (1)
- Daimler (DAI TH) -1.9%
- Infineon (IFX TH) -2%
- MTU Aero (MTX TH) -2.3%
- VW (VOW3 TH) -2.3%
MDAX:
- HelloFresh (HFG TH) +4.6%
- Third consecutive day of gains
- Deutsche PBB (PBB TH) +1.5%
- PBB Sees Stable Operating Performance for 2020 as 1Q Profit Down
- K+S (SDF TH) +0.5%
- K+S Raised to Hold at MainFirst; PT 6.80 euros
- Commerzbank (CBK TH) -1.6%
- Commerzbank Takes $520 Million Virus Hit as Provisions Jump (1)
- Varta (VAR1 TH) -2.1%
- Software AG (SOW TH) -2.3%
- Siemens Healthineers (SHL TH) -2.4%
- Cancom (COK TH) -2.7%
- Siltronic (WAF TH) -4.6%
SDAX:
- Steinhoff (SNH TH) +2.1%
- Hamburger Hafen (HHFA TH) +1.5%
- Eckert & Ziegler Strahlen- und Medizintechnik AG (EUZ TH) +1.1%
- Corestate (CCAP TH) +1%
- Corestate Roadshow Scheduled By Hauck & Aufhaeuser for May 13
- Salzgitter (SZG TH) +0.2%
- Salzgitter First Quarter Loss After Tax EU43.7 Mln
- LPKF (LPK TH) -1.6%
- Ceconomy (MEO TH) -2.2%
- Schaeffler (SHA TH) -2.3%
- Aixtron (AIXA TH) -2.8%
- Zeal Network (TIMA TH) -3.4%
>>> Up
* Engie Raised to Overweight at Morgan Stanley; PT 12 euros
* Informa Raised to Buy at Goldman; PT 515 pence
* Kingfisher Raised to Hold at SocGen; PT 174 pence
* Rathbone Brothers Raised to Buy at Canaccord; PT 1,846 pence
* Stroeer PT Raised to 60 euros from 47.50 euros at Barclays
* Talgo Raised to Outperform at BBVA; PT 6.30 euros
>>> Down
* Banco BPM Cut to Hold at HSBC; PT 1.13 euros
* Banco Santander Cut to Hold at HSBC; PT 2.30 euros
* BBVA Cut to Hold at HSBC; PT 3.10 euros
* BPER Banca Cut to Hold at HSBC; PT 2.40 euros
* CompuGroup Cut to Reduce at Baader Helvea; PT 67 euros
* Genfit ADRs Cut to Neutral at B Riley FBR, Inc.; PT $9
* Kongsberg Cut to Hold at Arctic Securities; PT 164 kroner
* Nexity Cut to Reduce at AlphaValue
* Stroeer Cut to Neutral at Citi; PT 65 euros
* ThyssenKrupp Cut to Sell at LBBW; PT 3 euros
>>> Initiation
* Coloplast ADRs Rated New Outperform at Bernstein; PT $16
* Medigene Rated New Buy at MainFirst; PT 10 euros
>>> Call
* *EUROPE CONSUMER DISCRETIONARY RAISED TO MARKET WEIGHT: BARCLAYS
* *EUROPEAN AUTOS SECTOR UPGRADED TO MARKET WEIGHT AT BARCLAYS
* Danone’s Long-Term Gross Margin Risk Is Priced In, Citi Says
* Expect Oversold Engie to Stage a Trading Rally : Morgan Stanley
* IHG Gets Street-Low Price Target at Citi on Recovery Outlook
* Stroeer Downgraded as V-Shaped Recovery Already in Price: Citi
* Volvo’s Decision to Scrap Dividend Not Overly Concerning: Citi
The risk-off sentiment that’s crept back into global markets lingered Wednesday as Asian stocks traded mixed with U.S. and European equity futures following warnings on fragile economies and stubborn coronavirus case counts.
Treasuries held on to gains, while S&P 500 futures were flat after the index closed down about 2% on downbeat comments from regional Federal Reserve chiefs and cautionary remarks from the top U.S. infectious-disease official about an early reopening. European futures dropped. Shares fell in Sydney, rose in Seoul and Hong Kong and were little changed in Shanghai and Tokyo. The yen retained its overnight advance.
US After Hours GRUB -2.7% gives up some gains after hours; PGNY +16.3%, UNFI +3.8%, ALGT +2.5% up on earnings; VREX -11.9%, INFN -9.3%, EGHT -5.9% down on earnings
Nikkei -0.25% Hang Seng +0.24% CSI -0.09% Shanghai +0.01% Shenzen +0.39%
Eur$ 1.0850 CNH 7.1038 CNY 7.0912 JPY 107.14 GBP 1.2277 CHF 0.9695 RUB 73.4210 WTI$ 25.63 -0.58%
S&P -0.05% Nasdaq +0.05% EuroStoxx -1.67% FTSE -0.98% Dax -1.64% SMI
Macro :
- Europe Will Have Summer Tourist Season, EU’s Gentiloni Tells SZ
- Markets Are Calling Bluff on Renewed Trade War Risk: China Today
- U.K. Budget Deficit Seen at GBP337B This Year: Telegraph
- Italy Set to Lift Restriction on Meeting Friends: Repubblica
- MSCI Says 62 Additions and 93 Deletions From MSCI World Index
- Goldman Asset ‘Modestly’ Underweight Stocks on Valuation Risk
Keep an eye on :
- ABN NA : ABN AMRO First Quarter Loan-loss Provision EU1.11 Bln
- AGS BB : Ageas First Quarter Insurance Net EU113 Mln, -56% Y/y
- ALC SW : Alcon First Quarter Core EPS 45c
- AMBEA SS : Ambea 1Q Net Sales SEK2.81 Bln, +12% Y/y, Est. SEK2.85 Bln
- ARGX BB : Argenx Directors Authorize Issuing of Additional Shares
- CS FP : AXA, Nippon Life Eye Investment in IndusInd Bank: Mint
- BEKB BB : Bekaert First Quarter Revenue EU977 Mln, -11% Y/y
- BDRILL NO : Borr Gets Notice From NYSE Regarding Continued Listing Standard
- CBK GY : Commerzbank 1Q Loan-Loss Provision EU326m (1)
- DBAN GY : Deutsche Beteiligungs AG Second Quarter Loss EU76.5 Mln
- DBK GY : Deutsche Bank Resumes Staff Cuts as Bosses Forgo One Month’s Pay
- DWNI GY : Deutsche Wohnen 1Q Ebitda Declines 22.6% to EU155.9 Mln (1)
- ENGI FP : Engie Delays Acquisitions Amid Virus, Complicated Valuations
- EXO IM : Exor to Retain PartnerRe Amid Covea Refusal to Complete Purchase, Agnellis Refuse to Make Concessions on PartnerRe; Deal Collapses
- FGR FP : Eiffage First Quarter Sales EU3.75 Bln, -4.3% Y/y
- GLEN LN : Norway Wealth Fund Excludes Glencore, RWE, Sasol, Anglo American
- GWD GY : Godewind to Be Deleted, Sixt Leasing to Be Added to SDAX Index
- IBAB BB : Ion Beam Not Currently Able to Reliably Guide on FY20
- ISP IM : Italy Antitrust Regulator Starts Review of Intesa Bid for UBI
- DEC FP : JCDecaux First Quarter Adjusted Revenue -13.9%
- ILM1 GY : Medios to Place 600,000 Shares in Accelerated Bookbuild Offering
- JEN GY : Jenoptik First Quarter Revenue EU164.4 Mln
- KIN BB : Kinepolis First Quarter Change In Attendance -9.1%
- LEO GY : Leoni First Quarter Ebit Loss EU57 Mln, -54% Y/y
- MOWI NO : Mowi First Quarter Loss EU77.7 Mln Vs. Profit EU194 Mln Y/y
- MVV1 GY : MVV Energie First Half Adjusted Net EU95 Mln, +22% Y/y
- KN FP : Windhorst to Buy Illiquid Assets From H2O at Discount: FT
- NKT DC : NKT to Raise Capital, Keeps FY Outlook for Revenue, Ebitda
- NMC LN : NMC Health Administrators Are Said to Kick Off Asset Sales
- PBB GY : PBB Sees Stable Operating Performance for 2020 as 1Q Profit Down
- PST IM : Poste Italiane 1Q Revenue EU2.76 Bln, Est. EU2.70 Bln, to Review 2022 Plan in 4Q, Sees 2020 Hit by Lockdown
- PSM GY : Commerzbank says KKR investment encourages takeover speculation
- RNO FP : Nissan Said to Plan $2.8 Billion in Cost Cuts, Book Charges
- RET BB : Retail Estates Says Belgian Rent Arrears Are EU4.79m for April
- ROTH FP : Rothschild & Co First Quarter Revenue EU416.4 Mln, -6.2% Y/y
- RWE GY : Norway Wealth Fund Excludes Glencore, RWE, Sasol, Anglo American
- SFQ GY : SAF-Holland SE Sees Full Year Revenue -20% to -30%
- SAF FP : France’s Shareholding Agency APE Subscribes to Safran Bonds
- SAL IM : Salini Impregilo Says New Orders EU1.5b Year-to-Date
- SZG GY : Salzgitter First Quarter Loss After Tax EU43.7 Mln
- SFER IM : Salvatore Ferragamo First Quarter Loss EU41 Mln
- SHLF NO : Shelf Drilling First Quarter Loss $184.9 Mln
- LNSX GY : Godewind to Be Deleted, Sixt Leasing to Be Added to SDAX Index
- SIX2 GY : Sixt First Quarter Profit EU16.2 Mln
- GLE FP : SocGen Halts Loans to Asia Oil Trading Firms After Hin Leong Hit
- GLE FP : SGX Starts Probe into SocGen’s Singapore Air Short Product: BT
- SWON SW : SoftwareONE: Holders Sell 17.5m Shares at CHF20/Share
- TGS NO : TGS First Quarter Net Revenue $152 Mln
- TUI LN : TUI Prepares 8,000 Job Cuts as Tour Operator Ready for Summer
- UTDI GY : United Internet First Quarter Ebitda EU300.8 Mln, +0.4% Y/y
- VOLVB SS : Volvo Group Withdraws Ordinary Dividend Proposal After Criticism
- VOW GY : VW Slows Output at Largest Factory Amid Tepid European Demand
Lars Windhorst to buy illiquid assets from H2O
Natixis subsidiary saw its clients withdraw more than €8bn from its funds last summer
German financier Lars Windhorst has struck a deal to buy back illiquid stocks and bonds from H2O Asset Management, nearly a year after concerns around these hard-to-sell assets sparked a stampede of investor withdrawals from the London-based investment firm.
H2O, which is a subsidiary of French bank Natixis, saw its clients yank more than €8bn from its funds last summer, after the Financial Times revealed the scale of their exposure to bonds linked to Mr Windhorst, a flamboyant financier who gained attention for his legal troubles in his native Germany.
While the asset manager weathered the storm, it has come under renewed pressure this year after its flagship bond and foreign exchange funds lost more than 50 per cent of their value, as the coronavirus outbreak knocked financial markets in March.
H2O, which managed about €30bn of assets before its recent meltdown, signed an agreement at the end of April with a new investment vehicle set up by Lars Windhorst, which will buy back stocks and bonds linked to the German financier at a discount, according to people familiar with the matter.
A spokesman for Mr Windhorst’s investment company Tennor confirmed the agreement.
The spokesman said: “We are aware that a company linked to our founder Lars Windhorst, with backing from a group of German investors, has signed an agreement to purchase securities linked to Tennor Group from H2O Asset Management LLP.”
H2O declined to comment.
Corporate filings in Luxembourg show that a trust company previously used by Mr Windhorst registered a new entity called Evergreen Funding last month, which one person familiar with the matter said was the vehicle that would buy back the discounted assets.
If H2O’s disposal of these illiquid positions proceeds as planned, it could alleviate pressure on the asset manager to comply with EU rules governing open-ended funds, which place a 10 per cent cap on illiquid assets, often referred to as the “trash ratio”.
Filings show that H2O’s Multiequities fund’s holdings of unlisted stocks exceeded 20 per cent of its assets at the end of March. Its proportion of illiquid assets more than doubled as the fund lost more than 60 per cent of its value that month.
The most recent annual report for the Multiequities fund showed that its only unlisted equity investment was in Mr Windhorst’s medical robotics company Avatera.
In the past year H2O has also breached limits around trading with certain types of counterparties. Its auditor KPMG flagged in February that the firm broke rules governing open-ended funds in large trades on hard-to-sell bonds with a small brokerage linked to Mr Windhorst.
Last month rating agency Morningstar downgraded H2O’s Allegro fund to “negative”, its lowest possible grade, on the back of concerns around its risk management.
“Evidence of poor stewardship and rampant risk-taking at H2O Asset Management has continued to mount even after concerns around illiquid corporate bonds at their funds arose in mid-2019,” said Matias Mottola, an associate director at Morningstar.
Norway’s oil fund sells out of Glencore, Anglo American and RWE
Commodities and utilities companies breached fund’s guidelines on use of coal
Norway’s $1tn oil fund has sold out of some of the biggest names in commodities and utilities including Glencore, Anglo American and RWE after the world’s largest sovereign wealth fund decided they breached its guidelines on the use of coal.
Exclusions by one of the world’s biggest shareholders — the fund owns on average almost 1.5 per cent of every listed company in the world — are often closely followed by other investors.
The fund also sold out of Brazilian mining company Vale due to “severe environmental damage” from a dam burst and placed miner BHP, and utilities Enel, Uniper and Vistra Energy on an observation list for possible sale later over their use of coal.
New criteria that stop the fund from investing in companies that extract more than 20m tonnes of thermal coal or use more than 10,000MW of power from coal led to the exclusions of commodities groups Glencore and Anglo American, utilities RWE and AGL Energy, and petrochemicals company Sasol early on Wednesday.
The oil fund, which always sells its entire stake in companies before announcing its exclusions, said it had taken longer than normal to do this since making its decision due to the recent market turmoil caused by coronavirus.
The fund owned 1.2 per cent of Glencore, 2.4 per cent of Anglo American, 0.6 per cent of RWE and 0.5 per cent in Vale, making it a leading shareholder in all.
Norway’s parliament has in recent years tightened the rules about what the oil fund can invest in, adding big coal extractors and users to producers of tobacco, nuclear weapons and cluster bombs to those excluded.
The government added a small number of oil and gas companies, those classified as pure exploration and production groups such as Lundin Petroleum, Marathon Oil, and Cairn Energy, last year but the fund has yet to announce their formal exclusion.
The fund estimates that such product-based exclusions lower its investment returns but bans based on conduct, such as that for Vale, lift them.
The fund is therefore not allowed to invest in some of the world’s best-known companies such as Airbus, Boeing, British American Tobacco, Honeywell and ZTE.
The oil fund also announced on Wednesday that it had for the first time sold out of companies due to unacceptable greenhouse gas emissions as it excluded Canadian Natural Resources, Cenovus Energy, Suncor Energy, and Imperial Oil due to the production of oil from oil sands.
It also barred Egypt’s Elsewedy Electric due to its participation in a hydropower project in Tanzania that it classed as “severe environmental damage” and Brazil’s Eletrobras for “systematic human rights violations” due to the construction of a power plant. These exclusions, along with Vale’s, were based on recommendations from the independent Council of Ethics.
Norway has tried to position the oil fund as one of the most ethical investors in the world and its decisions are followed by many other shareholders.
But other investors have taken more action on fossil fuels in recent years, particularly coal and increasingly oil and gas, as they worry about them becoming “stranded assets”, raising the pressure on Norway to respond.