>>> Paulson & Co (John Paulson) discloses updated portfolio positions in 13F fil

Paulson & Co (John Paulson) discloses updated portfolio positions in 13F filing: New INSW TWX BEAV TIME HAR positions
Highlights from 2016 Q4 filing as compared to 2016 Q3 filing:
  • New positions in: INSW (~3.68 mln shares), TWX (~2.86 mln), BEAV (~1.32 mln), TIME (~0.99 mln), HAR (~0.85 mln), WWAV(~0.68 mln), NXPI (~0.37 mln), GSK (~0.3 mln), SD (~0.25 mln), NSR (~0.2 mln)
  • Increased positions in: DXCM (to ~0.29 mln shares from ~0.04 mln shares), PFE (to ~0.35 mln from ~0.25 mln), LOXO (to ~0.83 mln from ~0.74 mln), ARDM (to ~0.19 mln from ~0.15 mln), LIVN (to ~0.31 mln from ~0.28 mln)
  • Maintained positions in: MYL (~20.6 mln shares), VRX (~19.38 mln shares), TEVA (~15.93 mln shares), MNK (~7.98 mln shares), GLD (~4.36 mln shares), SHPG (~4.21 mln shares), AGN (~3.55 mln shares)
  • Closed positions in: GRFS (from ~2.48 mln shares), VNDA (from ~2.18 mln), TMUS (from ~0.95 mln), MAR (from ~0.17 mln),CVS (from ~0.12 mln), TLND (from ~0.1 mln)
  • Decreased positions in: STAY (to ~28.63 mln shares from ~37.68 mln shares), AIG (to ~4.81 mln from ~9.06 mln), NG (to ~22.27 mln from ~25.6 mln), HPE (to ~2.98 mln from ~5.96 mln), VMW (to ~0.99 mln from ~1.91 mln), RIGL (to ~0.39 mln from ~0.81 mln), BCRX (to ~0.05 mln from ~0.36 mln)

>>> Saba Capital Management (Boaz Weinstein) discloses updated p

Saba Capital Management (Boaz Weinstein) discloses updated portfolio positions in 13F filing -- new positions in NGD;
Highlights from 2016 Q4 filing as compared to 2016 Q3 filing:
  • New positions in: NGD (~0.28 mln), OMF (~0.27 mln)
  • Increased positions in: CYH (to ~3.41 mln from ~1.33 mln),GNW (to ~1.4 mln from ~0.19 mln), USA (to ~2.14 mln from ~1.26 mln)
  • Maintained positions in: AGC (~5.05 mln)
  • Closed positions in: CRC (from ~0.42 mln), NE (from ~0.03 mln)
  • Decreased positions in: ODP (to ~0.26 mln shares from ~0.42 mln shares), MTG (to ~0.36 mln from ~0.52 mln

>>> US After Hours Summary: HUM +1%, DVN +1% following earnings/guidan


After Hours Summary: HUM +1%, DVN +1% following earnings/guidance, FIG +25% jumps on Softbank acquisition news, airlines soaring on Buffet's Berkshire quarterly portfolio update... FOSL -15%, TRUP -12% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: CIDM +15.7%, IOTS +12.7%, IVTY +5.8% (ticking higher), SEDG +4.8%, PBPB +4.7% (light volume), A +3.5%, KRNT +1.4%, HUM +1%, DVN +1%

Companies trading higher in after hours in reaction to news: FIG +24.8% (SoftBank [SFTBF] confirms plans to acquire Fortress Investment Group for $3.3 bln), PAH +3.2% (Elliott Management discloses new position), SIRI +3% (new Berkshire Hathaway stake), PG +2.9% (Nelson Peltz's Trian takes stake), NTCT +1.2% (ValueAct new position), TWTR +1% (CEO Jack Dorsey disclosed purchase of nearly 426K shares worth $7 mln), MON +0.9% (new Berkshire Hathaway stake), STNG +0.7% (announced that Scorpio Services Holding Limited, a related party affiliate, purchased an aggregate of 650,000 common shares of the Company in the open market at an average price of $4.40 per share),

Airline names are lifting on Warren Buffet's Berkshire Hathaway disclosing increased / new positions within the group: AAL +2%, DAL +1.9%, UAL +1.7%, LUV +1.5% (new Bershire holding), JBLU +0.8%, SAVE +0.3%

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: ESNC -16.9% (light volume), FOSL -14.8%, TRUP -12%, NAII -11.4%, LC -7.6%, HOLI -5.6%, AIG -4.5%, MASI -3.2%, OMI -3.1%, ASGN -2.1%, BXMT -1.6%, BYD -1.5%, SEV -1.4% (thinly traded), ESRX -1%

Companies trading lower in after hours in reaction to news: EARS -16.1% ( to sell common shares and warrants to purchase its common shares in an underwritten public offering; updates on patent case again Otonomy), SBCF -4.3% (commences common stock offering), MRK -2.1% (announces EPOCH study of Verubecestat for the treatment of people with mild to moderate Alzheimer's disease to stop for lack of efficacy ), DE -1.7% (Berkshire Hathaway decreased holding)

FT : EU capitals seek stronger right of veto on Chinese takeovers

EU capitals seek stronger right of veto on Chinese takeovers
Berlin, Paris and Rome want legal basis to block state-backed moves on key industries


Germany, France and Italy have called on Brussels to grant them a right of veto over Chinese high-tech takeovers, in a sign of the growing protectionist backlash against Chinese investment in Europe’s most sensitive industries.

Germany’s economics ministry said the three governments had written to Cecilia Malmström, EU trade commissioner, with the aim of opening up a debate on the issue. It said they wanted to create the legal basis for national governments to be able to “intervene in direct investments which are state-controlled”.

A copy of the letter, quoted by the news agency DPA, said Germany and other European countries “should have more scope to investigate individual takeovers and, where applicable, block them”. At issue are deals that are “unfair . . . because they rely on state funds or are aimed at buying up important technologies”.

Germany first announced last autumn that it was pushing for new EU rules to increase its powers to block takeovers by Chinese investors. But the initiative is likely to have a much greater chance of success now that France and Italy — the second and third largest economies in the eurozone — have signed up.

A flurry of deals involving Chinese companies has fuelled concern in Germany that some of its most prized technologies are ending up in Chinese hands. Such worries peaked last year with the €4.5bn acquisition of robotmaker Kuka by Chinese appliance maker Midea.

Chancellor Angela Merkel complained at the time about a lack of reciprocity, saying German companies wanting to invest in China were faced with a number of hurdles, such as a requirement to form joint ventures with Chinese partners.

A recent survey by EY found Chinese investment in Germany had risen from $530m in 2015 to $12.6bn last year. It said Germany was the most favoured European destination for Chinese investment, with 68 takeovers in 2016.

However, the environment is a lot less welcoming now than it was even a year ago — a trend exemplified by the fate of Fujian Grand Chip Investment’s attempt to buy German chip equipment maker Aixtron. Last October the German government abruptly withdrew its clearance for the deal and reopened a review, following a tip-off from US intelligence services that chips produced using Aixtron’s equipment could be used in China’s nuclear programme.

After it failed to win regulatory approval for the transaction from the US Committee on Foreign Investment, Fujian dropped its offer.

Under German law, Berlin can intervene to block foreign investments in defence industry enterprises or companies that are involved in IT security and the processing of state-classified documents.

But officials want to vastly expand such powers, so they can stop any acquisition that appears to be dictated by Chinese state industrial policy or is designed to enable technology transfers.

Matthias Machnig, Germany’s deputy economy minister, said that, as an exporting nation, Germany supported open markets and foreign investment. But foreign companies “must show that their investments in Germany are not driven by the state, and that financing for their deals is in keeping with the market”, he said.

“It is a principle that we want to establish in Europe, together with France and Italy,” he added.

>>> Toshiba could consider selling entire stake in memory-chip unit

Toshiba could consider selling entire stake in memory-chip unit

Toshiba [TYO:6502] would consider selling off 100% of its shares in its memory-chip business, the Nihon Keizai Shimbun reported.
The Japanese-language report cited president Satoshi Tsunakawa, who said at a press conference held on 14 February that a sell-off the company's entire stake in the memory-chip business is a possibility. He went on to say that at the present time the company has received various offers for the unit, adding that while considering future investments in the business he would not persist with the idea of maintaining a majority stake.
Toshiba had previously indicated, in connection with the planned sale of the memory business, that it was seeking buyers for a 19.9% stake, the report noted.
Toshiba announced on 14 February a provisional impairment loss related to its US nuclear power business of JPY 712.5bn (USD 6.3bn), and the planned sale of part of the memory-chip business is aimed at covering a shortfall in shareholders’ equity of JPY 150bn, the report said. To avoid falling into insolvency the company must repay debts by the end of March, the report noted. In regard to the possible sale of Westinghouse Electric, Tsunakawa said that he wants to reduce Toshiba’s current 87% stake and is looking for a partner. As to whether Toshiba would be willing to reduce its stake to less than 50%, he said that as of yet no decision has been reached, although he added that all options are possible.
Toshiba has already been designated as a Securities on Alert by the Tokyo Stock Exchange, and if the bourse decides that the company’s internal management system, etc., have not improved by 15 March 2017, the company could be delisted, the report said.
The original articles appeared in print; pg 1, 11.

WSJ : Trian Builds Stake in Procter & Gamble

Trian Builds Stake in Procter & Gamble
Shares of P&G rise after hours

Trian Fund Management LP has built a $3 billion-plus position in Procter & Gamble Co., the second shareholder activist in recent years to set its sights on the consumer-products giant.

Trian is expected to disclose that it owns a stake in the Cincinnati maker of Tide detergent, Gillette razors and Pampers diapers as early as Tuesday, according to people familiar with the matter.

Shares of P&G rose 3.8% after hours to $91.20.


It’s not clear what Trian is planning for the investment, but historically the firm has focused on companies it believes need tighter focus on core operations, as well as on cutting costs and management bureaucracy. As with other activists, it’s also known for advocating for asset sales or breakups. Trian sometimes works quietly from inside the boardroom and at other times wages public battles for influence.

P&G had a market value of about $225 billion as of Tuesday’s close, making it one of the biggest companies to face an activist, but Trian has had success at major companies before, including DuPont Co.
This is not the first time P&G has faced an activist. In 2012, William Ackman’s Pershing Square Capital Management LP invested in the company and called for a CEO change amid slumping profits. A year later, Robert McDonald was replaced by his old boss, A.G. Lafley, who remained chief executive until last year. Company veteran David Taylor is now chairman and CEO.

The activist world has been in guessing mode on the new Trian position, particularly since co-founder Nelson Peltz said in December that he and his partners had started buying a new stock. At that time, Mr. Peltz told CNBC that he hoped to talk to the board and management before the investment became public, as the firm has tried to distance itself from bare-knuckled activism and position itself as constructive, if opinionated, shareholders.

P&G has for years been slashing costs and seeking ways to boost its sales growth as some consumers gravitate toward smaller, and nimbler, rivals. The closely watched organic sales-growth figure has been stuck between 1% and 3% in recent years, though the company in January increased its target for the year ending in June to between 2% and 3%.

That increased forecast, along with better-than-expected sales in its fiscal second quarter, had boosted the stock and management said it was on the right track.

P&G shares have gained 5.7% this year including dividends, outpacing the S&P 500’s 4.2% return, but they trail the benchmark over the past one-year and three-year periods.


Analysts say the environment is tough for consumer-staples sellers, also because of macroeconomic factors like currency volatility. Several big research firms have downgraded P&G shares, including Goldman Sachs Group Inc., which put a sell rating on them in January.

Trian didn’t reveal a new investment in all of 2016, focusing instead on its portfolio companies, after making three new investments in 2015. One of them was then its biggest ever, a $2.2 billion stake in General Electric Co.
But it was also ramping up for this new bet by fundraising and selling some other stakes.

In the year it sold a $1.8 billion investment in PepsiCo Inc., after a three-year campaign that included a bid to break up the soda and snack maker, and a $383 million position in money-manager Legg Mason Inc., which marked one of the few times in which Trian has helped remove a chief executive.

Trian raised a specific fund for the P&G position in recent months, tapping large investment pools like sovereign-wealth funds and pension funds, people familiar with the matter have said.

Trian is expected to partially disclose the P&G stake Tuesday when it releases its portfolio as of the end of December. The investment fund has continued buying throughout the new year, the people said.

>>> Corvex Management (Keith Meister) discloses updated portfolio positions in 1

Corvex Management (Keith Meister) discloses updated portfolio positions in 13F filing: Maintains P BLL positions
Highlights from 2016 Q4 filing as compared to 2016 Q3 filing:
  • New positions in: YUMC (~14.63 mln shares - YUM spinoff),CRM (~3.45 mln), LVLT (~1.14 mln), BK (~1.01 mln), MO(~0.98 mln), ETFC (~0.76 mln), AMTD (~0.61 mln), TWX(~0.56 mln), GOOGL (~0.17 mln)
  • Increased positions in: BAC (to ~9.47 mln shares from ~2.37 mln shares), TMUS (to ~3.14 mln from ~0.86 mln), NOMD(to ~17.43 mln from ~15.43 mln)
  • Maintained positions in: YUM (~21.04 mln shares), P(~11.65 mln shares), BLL (~2.93 mln shares)
  • Closed positions in: CCE (from ~1.77 mln shares), HAIN(from ~1.44 mln), BEAV (from ~1.27 mln), CSOD (from ~0.75 mln), BIIB (from ~0.05 mln)
  • Decreased positions in: FNF (to ~4.92 mln shares from ~10.77 mln shares), WMB (to ~14.12 mln from ~18.63 mln),SIG (to ~2.91 mln from ~6.92 mln), COMM (to ~3.37 mln from ~5.62 mln), PAH (to ~16.7 mln from ~18.67 mln), EVHC(to ~0.92 mln from ~2.74 mln), JCI (to ~1.17 mln from ~2.96 mln), MPC (to ~0.58 mln from ~0.7 mln

>>> Saba Capital Management (Boaz Weinstein) discloses updated portfolio positio

Saba Capital Management (Boaz Weinstein) discloses updated portfolio positions in 13F filing -- new positions in NGD;

Highlights from 2016 Q4 filing as compared to 2016 Q3 filing:
  • New positions in: NGD (~0.28 mln), OMF (~0.27 mln)
  • Increased positions in: CYH (to ~3.41 mln from ~1.33 mln), GNW (to ~1.4 mln from ~0.19 mln), USA (to ~2.14 mln from ~1.26 mln)
  • Maintained positions in: AGC (~5.05 mln)
  • Closed positions in: CRC (from ~0.42 mln), NE (from ~0.03 mln)
  • Decreased positions in: ODP (to ~0.26 mln shares from ~0.42 mln shares), MTG (to ~0.36 mln from ~0.52 mln).

>>> Apple Goldman Sachs conference update

Apple Goldman Sachs conference update
  • Co continues to believe there is room for growth in iPhone business; company notes that its market share is still low in emerging markets.
  • Asked about cash: Company mentioned high US tax rate; hopeful for tax reform.
  • Co will provide update on capital return program in the Spring (as normal).
  • Co asked about border tax: Company said its hard to speculate at this time