(GS) HF Monitor: Low return dispersion has limited alpha opp.and has weighted on

--> The return of return dispersion

Low return dispersion has limited alpha opportunity and has weighed on hedge fund performance in recent years but a recent rebound in dispersion bodes well for the stock-picking environment. Hedge fund favorite long positions tilt toward growth and momentum, the two best-performing factors in 2015. Sector and stock exposures show an uncommon appetite for defensives, which have outpaced cyclicals by nearly 10 pp YTD. This report analyzes 833 hedge funds with $2.1 trillion of gross equity positions at the start of 3Q 2015 ($1.5 trillion long and $684 billion short).

* Funds lag in 2015 but rising dispersion supports alpha generation
Return dispersion recently rebounded from historical lows, boosting prospects for stock-picking alpha. Hedge funds typically perform best when dispersion is high. Many funds have beaten the market YTD in sectors with the highest dispersion, led by Energy. Our Hedge Fund VIP list of most popular longs (Bloomberg: GSTHHVIP) has outpaced the S&P 500 by 44 bp YTD. 15 new constituents include DLTR, ENDP, HCA, KHC, STZ, and TDG.

* Funds adopt defensive posture with sector and stock allocations
With defensives beating cyclicals by 950 bp YTD, funds lowered weightings in most cyclical sectors, adding exposure to defensives such as Utilities, Staples, and Telecom. Similarly, during the last 6 months Hedge Fund VIPs
have been more correlated with defensives than at any time since 2011.

* Growth and momentum factor tilts benefit portfolios in 2015
Growth and momentum are two of the best-performing factors YTD and the largest factor exposures of our Hedge Fund VIP list. The global growth outlook, strong USD, and impending fed hike have caused funds to shift
exposures toward domestic-facing, defensive, and “high quality” stocks.

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: ARAY +9.6%, BRCD +4.9%, UEPS +4.9%, AVNW +3.6%, CRM +3.2%, FL +2.5%, MSON +1.6%, GPS +0.7%

M&A news:SPIL +33.2% (Advanced Semiconductor Engineering (ASX) to commence tender offers for Taiwan and U.S. shares of SPIL ), RPTP +8.2% (to acquire Quinsair from Tripex Pharmaceuticals for $68.4 mln upfront; co reaffirmed FY15 guidance)

Select metals/mining stocks trading higher: AU +6.2%, GFI +2%, GG +1.4%, AEM +1.2%, ABX +1.1%, GDX +1%

Other news: IMUC +9.8% (issues a letter to shareholders on its progress in advancing ICT-107 to a Phase 3 Registrational Trial), AAC +5.6% (last night's conference call on the California Legal case and preview its Q3 operations; Deerfield Mgmt discloses 6.43% passive stake in 13G filing), ZIOP +1.7% (ZIOPHARM discloses that on August 17, it, Intrexon (XON) and MD Anderson entered into a research and development agreement to formalize the scope and process of the previously announced license agreement ), IOSP +1.6% (to replace BRLI in the S&P SmallCap 600), Financial Officer of its Match Group subsidiary) IACI +1.5% (announced that Gary Swidler has been appointed as Chief Financial Officer of its Match Group subsidiary)

Analyst comments: ABB +0.8% (upgraded to Buy at HSBC
)

>>> US Gapping Down

Gapping down
In reaction to disappointing earnings/guidance: TFM -13.5%, ROST -9.3%, CRMT -6.4%, NDSN -5.8%, INTU -4.3%, DE -4%, MOLG -1.8%, HPQ -0.7%

Select Fan Favorites showing weakness with the broader mkt: FIT -4.6%, NFLX -3.1%, GPRO -2.4%, FB -1.6%, TSLA -1.6%, BA -1.5%, SBUX -1.3%, AAPL -1.1%, MA -1%
Select China related names showing early weakness with Shanghai -4%+ overnight: BITA -4%, CMCM -3.4%, JD -2.8%, CTRP -2.6%, BIDU -1.4%, JKS -1.4%

Other news: GIG -12.1% (announces a public offering of common stock), XON -5.5% (announces a public offering of common stock), BTE -4.3% (sees 25% reduction in Capex; suspends dividend), SUNE -2.7% (cont weakness), MU -2% (cont weakness), BTU -1.8% (following 20%+ move higher yesterday), GILD -1.3% (European Medicines Agency validates co's marketing application for single tablet regimen containing rilpivirine, emtricitabine and tenofovir alafenamide for HIV treatment), WIN -1.2% (afternoon strength on potential data unit sale), NE -0.9% (provided its monthly fleet contract status update), WFM -0.8% (following TFM results), AEO -0.7% (Chief Marketing Officer, Michael Leedy, announced that he will step down from his position, effective September 15, 2015), CSTM -0.7% (announced West Virginia Economic Development Authority approval for a partial financing of its $35 million investment in its Ravenswood plant), TUR -0.6% (Turkey will hold snap election on November 1)

Analyst comments: SSI -0.9% (downgraded to Neutral from Buy a B. Riley & Co), DIS -0.9% ( target lowered to $89 from $98 at Cowen), LUX -0.7% (downgraded to Sell from Neutral at Goldman)

Reuters : Uber seen reaching $10.8 billion in bookings in 2015: fundraising pres

Uber seen reaching $10.8 billion in bookings in 2015: fundraising presentation

{http://reut.rs/1J9TZXU}

Uber Technologies Inc's [UBER.UL] global bookings are projected to rise nearly threefold to $10.84 billion this year and reach $26.12 billion the next, according to a recent presentation for potential investors seen by Reuters.

The ride-hailing service, which operates in over 50 countries, keeps 20 percent of booking revenue, showed a confidential slideshow prepared by Chinese bankers with input from Uber, aimed at soliciting investment in a fund participating in Uber's Series F financing.

Based on those figures, 2015 revenue would be roughly $2 billion, according to a Reuters calculation.

A spokeswoman at Uber's San Francisco headquarters, when asked about the presentation, said the company does not comment on "rumor and speculation."

The undated presentation featuring data from as recently as June offers a glimpse of the explosive growth of the six-year-old firm, last valued by investors at $50 billion - the most for a privately held technology firm worldwide.

Uber links passengers and drivers via apps, earning revenue Chief Executive Travis Kalanick last year said was doubling every six months. But its services have been banned in several cities where, for instance, drivers have not held commercial licenses. It has said it is working with authorities to lift the bans.

Bookings reached $2.91 billion last year and $687.8 million in 2013, according to the presentation, which does not feature expenses or say whether Uber is profitable.

The slideshow also said state-owned China Life Insurance Co (601628.SS) (2628.HK) and China Taiping Insurance (0966.HK) invested in Uber in the past year, adding to a shareholder base numbering India's Tata group and Bennett, Coleman & Co Ltd.

China Life confirmed the investment. China Taiping declined to comment.

IPO

The presentation was prepared for potential investors in a fund holding shares of Uber Global and Uber China, a separate company formed for the mainland where it competes with Didi Kuaidi. It contained operational data for both entities but did not break out financial details of Uber China.

It also forecast an initial public offering of Uber Global within 18 to 24 months. Kalanick and people close to the firm have in the past declined to discuss any timetable.

Uber is widely believed to be losing money as it offers financial incentives to drivers to gobble up market share. It is also dealing with numerous legal and regulatory issues and bans in countries including France, Spain and Thailand.

But backers ranging from Silicon Valley venture capitalists Benchmark and New Enterprise Associates to institutional investors Fidelity and the Qatar Investment Authority have poured in close to $5 billion to support Kalanick, who has said he aims to build a computerized logistics network.

>>> Hewlett-Packard notes from conference call: Challenging environment in Perso

--> -1.17% pre open

Hewlett-Packard notes from conference call: Challenging environment in Personal Systems and Printing expected to continue for 'several quarters to come' (27.35 -0.39)

  • Enterprise group performed very well
  • In Personal Systems and Printing markets co sees difficult business environment for "several quarter to come"; competitive pricing pressures have accelerated since May
  • Currency continued to significantly impact recorded revenue
  • Co faced challenging macro and IT spending evinronment; continued weakness in Russia and China

>>> US Early premarket gappers

Early premarket gappers
Gapping up: SPIL +31.1%, ARAY +9.6%, RPTP +8.2%, AU +7.1%, AAC +5.6%, BRCD +4.9%, UEPS +4.9%, CRM +3.7%, AVNW +3.6%, STM +2%, ABX +1.9%, NOK +1.8%, FL +1.8%, AEM +1.7%, SDRL +1.7%, IOSP +1.6%, MSON +1.6%, GDX +1.5%, GG +1.4%, GFI +1.4%, STO +1.1%, GPS +0.7%

Gapping down: TFM -13.7%, ROST -9.3%, CRMT -6.4%, XON -5.9%, NDSN -5.8%, BITA -3.9%, JD -2.8%, INTU -2.8%, SUNE -2.4%, HPQ -2.4%, NFLX -2.1%, SWKS -2.1%, BIDU -1.9%, BTU -1.8%, MOLG -1.8%, JKS -1.7%, MU -1.6%, FB -1.6%, DE -1.6%, GILD -1.5%, BA -1.5%, GPRO -1.4%, CTRP -1.4%, MA -1.4%, TSLA -1.3%, WIN -1.2%, AAPL -1.2%, SBUX-1.1%, DIS -1%, NE -0.9%, WFM -0.8%, AEO -0.7%, CSTM -0.7%

NY Post : Caesars conflict means trouble for John Paulson

Billionaire investor John Paulson is caught in the middle of another deal that critics claim is conflict-ridden.
Junior creditors of Caesars Entertainment’s bankrupt operating unit argue a proposed restructuring deal between the casino giant and fewer than half of its creditors represents an “improper” conflict of interest.
That’s because most of creditors who signed on to the deal also own equity in Caesars parent company, which has not filed for bankruptcy, lawyers for the junior creditors said Thursday.
The proposed deal would allegedly allow Caesars parent company — and its shareholders — to keep the best assets while depriving creditors of the bankrupt operating unit.
Paulson is one of the biggest shareholders in the parent company, with a 10 percent stake.
He also owns an undisclosed amount of debt at the operating unit, according to sources, which would make him one of the “conflicted” creditors. Paulson declined comment
To push through the restructuring proposal, Apollo-backed Caesars said it needs more than 50 percent of junior creditors to agree to it. The junior creditors are lobbying against it.
Paulson was caught up in a controversial Goldman Sachs deal, known as Abacus, in 2006. Goldman paid $550 million to settle accusations that it let Paulson cherry pick mortgage-backed securities that were packaged and sold to investors, knowing that the loans were doomed to fail.