Search

Hedge fund Glenview Capital Management is set to meet with CVS Health executives to propose ways to improve the struggling healthcare company's operations. Glenview, which owns about 1% of CVS's shares, has established a large position in the company and believes in its potential. CVS has seen its shares fall 24% this year and has announced layoffs as part of a cost-cutting plan. The company has been struggling due to issues with its Medicare business and is also facing scrutiny of its pharmacy-benefit unit. [Extracted from the article]

Hedge fund Two Sigma is in settlement talks with the Securities and Exchange Commission (SEC) regarding a trading scandal at the firm. Two Sigma is expected to pay up to $100 million to settle the investigation, which centers around an ex-employee who allegedly adjusted trading models without authorization, resulting in significant losses and gains. The firm's co-founders recently stepped down as co-chief executives due to internal conflicts. The SEC's investigation focuses on the conduct of the senior researcher involved, and it remains unclear whether the agency plans to sue or seek a settlement with the individual. [Extracted from the article]

Southwest Airlines Chairman Gary Kelly will retire next year as the airline faces pressure from activist investor Elliott Investment Management to change its leadership and business strategy. Kelly, who has been with Southwest for nearly 40 years, served as CEO for 18 years before becoming executive chairman in 2022. Elliott Investment Management has built a significant position in Southwest and aims to revamp the airline's leadership. Six other directors at Southwest will retire in November, and the airline plans to appoint four new directors, potentially including candidates from Elliott's slate. Southwest has been soliciting feedback from other investors on the issues raised by Elliott. [Extracted from the article]

Texas Instruments (TI), a chip maker, has announced that it may reduce its capital spending in 2026, depending on its revenue performance. If revenue is at the low end of expectations, TI may only spend $2 billion, compared to its previous plan of $5 billion annually through 2026. However, if revenue grows at the high end of expectations, TI could still spend the full $5 billion. This announcement follows activist investor Elliott Investment Management taking a position in TI, which seems to have influenced the company's decision. TI's revenue has been declining for six consecutive quarters, impacting its stock performance. TI's decision to invest aggressively in manufacturing and build up inventory has also affected its free cash flow. Analysts have differing opinions on TI's capital management update, with some commending the company's commitment to shareholders and others expressing concerns about the increased reliance on revenue growth. [Extracted from the article]

Ancora Holdings, an investor group, is urging Forward Air's board of directors to consider selling the company. This comes after private equity firm Clearlake Capital expressed interest in engaging with the board about strategic alternatives. Shareholders have been concerned since Forward Air completed a troubled acquisition of Omni Logistics in January. Ancora argues that a sale to a well-capitalized buyer would likely deliver a premium for Forward Air's shares. [Extracted from the article]

Elliott Investment Management has announced plans to launch a proxy fight at Southwest Airlines, aiming to nominate 10 directors to the carrier's board. Elliott, which owns roughly 8% of Southwest's shares, has been calling for the replacement of Chief Executive Bob Jordan and Executive Chairman Gary Kelly. Southwest's shares have dropped over 10% this year, and the company has been trying to address its financial struggles by implementing changes such as assigning seats on flights and selling seats with extra legroom. [Extracted from the article]

Activist hedge fund Starboard Value has acquired a stake in Starbucks and is urging the company to take action to improve its stock price. The exact size of Starboard's stake and its specific demands are unknown. This development comes as Starbucks is already in talks with another activist investor, Elliott Investment Management, which has also been pushing for changes within the company. Starbucks has been facing challenges in its key U.S. and China markets, leading to a decrease in sales and a decline in its stock price. The company's CEO, Laxman Narasimhan, has asked for patience as the company works on its turnaround efforts. [Extracted from the article]

Japanese technology investor SoftBank Group has announced plans to buy back up to $3.5 billion of its shares, which is seen as a positive sign for the Tokyo stock market. The buyback is expected to boost investor sentiment and help lift the market after its recent significant drop. SoftBank's own share price has fallen by over one-third from its peak in July. The company also reported a surprise first-quarter loss, but its CFO stated that SoftBank's financial health is solid with ample cash. [Extracted from the article]

Oaktree Capital, a U.S. investor, has taken control of FC Inter Milan, the Italian soccer champions, after the team's Chinese owners failed to repay a rescue loan. Oaktree had provided a loan during the Covid pandemic to keep the team afloat, and they are now capitalizing on that loan to seize control of the club. This move comes as Inter Milan has experienced success on the field, winning this year's Serie A title. Oaktree aims to ensure the long-term stability and prosperity of the club. This is part of a trend of large U.S. private fund managers investing in international sports clubs to diversify their portfolios. [Extracted from the article]

Swedish private-equity firm EQT has announced its acquisition of U.S. digital consultancy Perficient in a $3 billion all-cash deal. EQT will pay $76 per share, a 58% premium to Perficient's closing price on Friday. The acquisition has been unanimously approved by Perficient's board, and the current management team will remain in place. The deal is expected to be completed by the end of 2024, after which Perficient will be delisted from Nasdaq. [Extracted from the article]

Fidelity Investments, a major investment firm, has recently cut approximately 700 jobs, marking its first round of layoffs since 2017. The cuts affected less than 1% of the company's workforce, and those affected were notified on Thursday. Fidelity had been hiring aggressively in recent years due to increased interest in investing, but the decision to downsize was made to better align with the evolving needs of customers and ensure long-term competitiveness. Fidelity International, a separate entity based in London, is also planning to cut around 1,000 jobs this year. [Extracted from the article]

Pam Chan, a former executive at BlackRock, is leaving the company to focus on investing in obscure private markets. She is joining Lingotto, a new asset manager backed by Italy's Agnelli family, as the managing partner and chief investment officer of its new Mosaic Fund. The fund will focus on private market opportunities that don't fit into traditional investment categories, such as private equity or real estate. Chan plans to invest in assets like music royalties, insurance, structured equity, and structured credit. She also sees opportunities for private capital to intersect with fiscal policy and bridge financing gaps in government projects. [Extracted from the article]

Fidelity Investments CEO Abigail Johnson has made significant changes to the company's executive team, appointing new leaders to senior roles, including finance chief. These moves reflect Johnson's commitment to rotating members of her leadership team and bringing new perspectives to different parts of the company. Fidelity posted record revenue in 2023, with operating income totaling $8.5 billion, a 6% increase from the previous year. The company's assets under management and assets under administration also saw significant growth. Fidelity remains a privately held company controlled by the Johnson family and does not disclose the same level of financial detail as its publicly traded rivals. [Extracted from the article]

John Angelos, who has owned the Baltimore Orioles for 30 years, surprised stakeholders by selling a controlling stake in the team to a group of investors led by David Rubenstein. The sale blindsided many, including T. Rowe Price, an investment management firm that had reached an agreement with Angelos to buy the naming rights to the team's ballpark. The future of the naming rights remains uncertain, but fans are optimistic about Rubenstein's ownership, as he is expected to invest more in the team. The sale has left some Maryland lawmakers frustrated and confused, as they were not informed about the negotiations. The lease Angelos signed before the sale also presents a loose end for Rubenstein to address, as it allows the Orioles to opt out after 15 years if they cannot secure a separate agreement by the end of 2027. Despite the surprise sale, Rubenstein is enthusiastic about the opportunity to develop the land around Camden Yards and create economic opportunities for the community. [Extracted from the article]

Companies such as Amazon, BlackRock, and Google have recently announced plans to cut jobs, indicating a continued focus on efficiency and doing more with less. Layoffs are being driven by factors such as the emergence of artificial intelligence, which can perform tasks previously handled by white-collar workers, and a reassessment of corporate roles following the pandemic. While the labor market is still strong overall, the climate for job seekers is cooling, with businesses scaling back expansion plans and offering smaller raises. However, some experts predict that there will also be a spike in hiring as companies seek new skill sets. [Extracted from the article]

The sale of SVB Financial's venture capital arm has encountered difficulties, leading creditors such as Pimco and Davidson Kempner to potentially take over the business. Two potential buyers, SkyBridge Capital and Atlas Merchant Capital, as well as Vector Capital, have withdrawn from the process due to SVB's rejection of their bids. SVB Capital, which manages around $10 billion in assets, was expected to sell for $250 million to $500 million. If no new bidders emerge, the venture capital business could remain under the control of creditors such as Pacific Investment Management Co. and Davidson Kempner Capital Management. [Extracted from the article]

Activist investor Elliott Investment Management has taken a $1 billion stake in Phillips 66, a U.S. refining giant, and is pushing for change within the company. Elliott is urging Phillips 66 to sell noncore assets, focus more on its main refining business, and address its high operating costs. Phillips 66 has a diverse portfolio, but its performance has lagged behind competitors due to inefficiencies in its refining segment. While Phillips 66 was already moving in a similar direction, Elliott's involvement may lead to more drastic changes and increased accountability. Elliott's previous involvement in Marathon Petroleum resulted in significant shareholder returns. With Elliott's influence, Phillips 66 may see faster share-price appreciation. [Extracted from the article]