Activist guru sees long-term potential in the streaming giant. : Seeking to capitalize on a steep sell-off in Netflix Inc. (NFLX, Financial) over the past several months, Pershing Square Capital leader Bill Ackman (Trades, Portfolio) revealed a stake in the streaming giant earlier this week. In a letter to shareholders released on Wednesday, the billionaire activist investor said the New York-based hedge fund has invested in 3.1 million shares of Netflix since last Friday, making it one of the top 20 shareholders of the company.
(Reuters) - Activist investor Elliott Management disclosed its stake in NiSource on Friday and said it supported the company's decision to name a new chief executive officer, sending shares in the utility to a near two-year high. The company on late Thursday named Lloyd Yates as its chief executive officer with Joe Hamrock announcing his retirement after nearly a decade at NiSource. "As one of NiSource's largest investors, Elliott welcomes the company's decision to refresh its management and board following our recent dialogue," the activist investor said in a statement.
Inflation is raging, and hedge fund titan Seth Klarman, chief executive of Baupost, says it has reached a dangerous level for financial markets. "We don't know how bad the current bout of inflation will be, but we believe that mounting inflation and the related possibility of materially higher interest rates are posing a real danger to financial markets," Klarman wrote in a letter to investors obtained by CNBC.
Netflix stock on Thursday rose about 8%, boosted by an announcement from hedge fund Pershing Square Capital Management LP that it had become a top 20 investor. The streamer's stock, which closed at $386.70 a share on the Nasdaq, had been in decline after its earnings results last week revealed it had missed internal projections for new subscribers in the fourth quarter and experienced an expected slowdown in subscriber growth in the first quarter. Netflix subscriptions surged as the COVID-19 pandemic hit, but growth is slowing as businesses reopen and competition from streaming rivals rises.
Click to view a price quote on TSLA. : Inflation is raging, and hedge fund titan Seth Klarman, chief executive of Baupost, says it has reached a dangerous level for financial markets. "We don't know how bad the current bout of inflation will be, but we believe that mounting inflation and the related possibility of materially higher interest rates are posing a real danger to financial markets," Klarman wrote in a letter to investors obtained by CNBC.
Shares fell more than 25% last week after Netflix gave weaker-than-expected guidance for subscriber additions in the current quarter. : Netflix stock spiked as much as 10% on Thursday after hedge fund investor Bill Ackman revealed a $1.1 billion bet on the streaming giant.
Shares of Netflix Inc. bounced 4.8% in premarket trading Thursday, off a 22-month closing low in the previous session, after Bill Ackman said his Pershing Square Capital Management hedge fund bought 3.1 million of the streaming video services company's shares "beginning on Friday and over the past several days." Based on Wednesday's closing price of $359.70, which was the lowest since March 27, 2020, the shares purchased would be valued at about $1.12 billion, or about 0.7% of Netflix's market capitalization of $159.33 billion.
Ackman's Pershing Square snapped up Domino's Pizza stock last year, and plowed about $2 billion into its portfolio holdings in the spring of 2020.
Jan 27 (Reuters) - Hedge funds that specialize in picking stocks started 2022 with losses, investors and research firms said this week as markets went on a rollercoaster ride fueled by fears of rising interest rates and geopolitical turmoil. Data from Morgan Stanley, which works with the world's biggest and most powerful hedge funds, show that global hedge funds were off 3.1% in the first three weeks of January, according to a source with direct knowledge of the research. Morgan Stanley declined to comment.