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Elliott Management Corporation is an American investment management company. It is also the largest activist fund in the world.

It functions as an affiliate of the management of American hedge fund flagship Elliott Associates L.P. and Elliott International Limited. Elliott was founded by Paul Singer, who also serves as CEO of a management company, based in New York City. Since its inception, Elliott has generated for investors 14.6% of net annual income, compared with 10.9% for the S & P 500, and now has over US $ 34 billion in managed assets. Until the first quarter of 2015, Elliott's portfolio is worth more than $ 8 billion. In 2009, "more than a third of Elliott's portfolio is concentrated on depressed securities, usually in debt of a bankrupt or nearly bankrupt company." Elliott has been widely described as a vulture fund.


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Ikhtisar

Paul Singer created Elliott Associates in January 1977, starting with $ 1.3 million from friends and family. (Elliott is his middle name.) In the early years, the company focused on convertible arbitration. Since the 1987 stock market crash and the early 1990s recession, however, the company has turned to a multi-hedge fund strategy. Elliott Associates manages $ 8.6 billion and is Elliott Management's principal domestic fund.

Elliott is known for his relatively high return and low volatility. The New York Times has called Paul Singer "one of the most respected hedge fund managers" on Wall Street. Elliott returns generally outpaced S & amp; P 500. Describing Singer in 2012 as "one of the smartest and hardest money managers in the business," Fortune notes that for the past 35 years, it has "generated an average 14% annual return beyond cost, almost double the S & P 500 price appreciation. " From the beginning, Elliott has generated for investors 14.6% of net annual profit, compared with 10.9% for the S & P 500, while having only one-third of the index volatility. The company is currently closed to new investors. In mid-2008, Elliott counted 175 employees in New York City, London, Tokyo, and Hong Kong and is one of the oldest hedge funds under sustainable management.

In the November 2014 investment letter, Elliott described optimism about US growth as unwarranted. "No one can predict how long governments can get away with fake growth, counterfeit money, fake jobs, fake financial stability, fake inflation numbers and false earnings growth," Elliott wrote. "When confidence is lost, the loss can be severe, abrupt and simultaneous in a number of markets and sectors."

In 2015, Institutional Investor/Alpha magazine gave Elliott an A and ranked # 9 among hedge funds worldwide.

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Equity partners

Elliott has four equity partners. Paul Singer and Jon Pollock are co-chief investment officers; Gordon Singer, Paul Singer's son, runs Elliott's office in London. Steven Kasoff, formerly a senior portfolio manager of the company, was also given the title of equity partner in January 2015.

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Affiliates and units

  • Hambledon, Inc. is a Cayman Islands company controlled by Singer.
  • NML Capital is a subsidiary of Elliott Management.
  • Kensington International Ltd. is a subsidiary of Elliott Management.
  • Maidenhead LLC and Warrington LLC are US entities controlled by Singer.
  • Elliott Advisors (UK) Ltd. is "a London-based adviser to Elliott."
  • Elliott Advisors (HK) Limited is a "Elliott Management branch in Hong Kong."

Elliott Issues New Letter to Arconic Shareholders | Business Wire
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Investment

Initial activity

At the beginning of its history, Elliott focused on convertible arbitration, refocusing primarily on debt-stricken investment after the 1987 stock market crash and the early 1990s recession. Elliott is known for restructuring US companies such as TWA, MCI, WorldCom, and Enron and overseas companies including Telecom Italia SpA and Elektrim.

Wella AG

In 2003, Elliott was sure P & amp; G does not offer a fair price for all the preferred shareholders for the German hair products company, Wella AG. Elliott joined other funds against the deal, including Germany's second largest fund manager, Deka Investments. After several years of legal battles and shareholders, P & amp; G raised his bid for Wella AG for all the preferred shareholders. According to BÃÆ'¶rsen-Zeitung , Elliott said the goal is to "protect the rights of minority shareholders."

Shopko

In April 2005, Wisconsin-based retail chain Shopko announced that it agreed to acquire about $ 1 billion by private equity firms for $ 24 per share. This and the subsequent bid of $ 25 was denied, according to the Milwaukee Business Journal, after some dissident shareholders threatened to vote down the transaction, claiming the offer was too low. Elliott joined another hedge fund in opposing sales because he felt the price was too low and was worried about the conflict of interest on the board. Elliott eventually participated in ShopKo purchases for $ 29 per share.

Adecco

Adecco human resources consulting firm announced in January 2006 that it had acquired a 35 percent stake in DIS AG, at a price of EUR54.5 per share, making an offer at that price for all shares. The company also announced that CEOs DIS and CFO have signed a favorable management agreement that will eventually make them CEOs and CFOs, respectively, from Adecco. Adecco attempted to cancel the DIS list but was blocked in court by a number of hedge funds, including Elliott. The fund also raises concerns about conflicts of interest by the CEO and CFO. Finally Adecco offers EUR113 per share, which is accepted.

Novell

In March 2010, Elliott bid $ 5.75 per share for Novell software company. Although Novell rejected the offer, Elliott "welcomed" the decision to sell the company.

Vinashin

In December 2011, it was reported that Elliott sued Vietnamese shipbuilder Vinashin in a British court. The company had failed a year earlier on a $ 600 million loan backed by the Vietnamese government, then offered to pay 35 cents to the dollar. Elliott sued for the full amount. In April 2012 Elliott dropped the case.

Compuware

It was reported in December 2012 that Elliott, who already owns an 8% stake in Compuware, has offered to buy the company for $ 11 per share in cash.

Hess

By the end of 2012, Elliott criticized the Hess oil company for capital use and was "disturbed" from oil exploration and production by other activities. In January 2013, Elliott asked Hess to sell certain assets and asked Hess investors to select five new directors as part of an effort to reconfigure an oil company and thereby increase its share price. "Buried inside Hess Corp. is one of the key focusing companies in the US," Elliott wrote.

In March, Hess announced that he was acting on some of Elliott's suggestions, but Elliott said that Hess's change was far from what was needed. In April, it was reported that Hess would close his office in London on the advice of Elliott. Hess has been the top pick for Elliott since 2013. In the fourth quarter of 2014, Elliott has 17.8 million shares of Hess, valued at $ 1.3 billion, making it Elliott's biggest holding.

Interpublic Group

In the summer of 2014, Elliott discloses a 6.7% stake in Interpublic Group of Companies, a parent company of advertising, and "someone explaining this issue says Elliott plans to call the company to sell himself to one of his competitors".

Sigfox

Elliott is one of several companies that, according to a February 2015 report, have invested in Sigfox's mobile network, which serves France, Spain, the UK and the Netherlands.

Solar power projects in the UK

In February 2015, Telegraph reported that Elliot Management's British hand, Elliott Capital Advisors, has put money into half a dozen unnamed solar projects in the country, and that it has "protected its stakes with taking out short positions at five other renewable energy funds listed on the London stock exchange. "

Comcast

In September 2015, Elliott bought 1,902,642 shares in Comcast, a Philadelphia-based mass media company, for an average price of $ 58.68 per share. This transaction has a 1.65% impact on Elliott's portfolio.

CDK Global LLC

Elliott acquired a 4% stake in CDK Global in May 2015. In September 2016, it held a 5.4% stake in the company and was the third largest shareholder.

On May 4, 2016, Elliott sent a letter to the CDK Board of Directors outlining the steps they felt needed to meet ROI and projected margins. Quoting "plans for CDK to optimize its business operations and drive significant improvements in shareholder value."

On June 8, 2016, Elliott sent a letter to the CDK Board of Directors advising that "CDK adopted the steps in the Value Maximizing Plan without delay" due to shareholder support of the plan in a letter of 4 May.

Samsung

In the summer of 2015, Elliott, then a major investor in Samsung's construction division, opposed the effort by acting Samsung's chief Jay Lee who is trying to have a share of the $ 8 billion unit construction company's purchase. Despite Elliott's opposition, the merger runs and Elliott sells his shares. Two years later, Lee was punished for bribery and jailed after being shown he had bribed a friend of the South Korean president to secure the merger.

Cabela

In October 2015, Elliott revealed an 11.1 percent stake in Cabela, a recreational retailer and outdoor clothing reported that it was trying to involve the company board to discuss potential corporate strategies and sales.

PulteGroup

In July 2016, Elliott persuaded PulteGroup, a home builder where he owns 4.7%, to add three new board members, cut investment in new land, and repurchase shares.

Alcoa

After buying a stake in Alcoa (now Arconic) who earned him three council seats, Elliott forced a restructuring, after which Elliott was able to sell his shares with a 104% profit.

Energy Future Holdings

In August 2017, Elliott had enough Energy Holding debt to block Berkshire Hathaway's takeover bid, which had bid in the previous month to rescue the debt-ridden company.

Mentor Graphics Corp.

Elliott purchased 9% of Mentor Graphics Corp in 2017, then pushed the acquisition by Siemens. Elliott earns 68% profit.

NXP Semiconductor NV

In November 2017, Elliott and UBS Group AG collaborated in an effort to raise the purchase price of NXP Semiconductors NV, sought by Qualcomm.

Oncor

In August 2017, Elliott, who had $ 1.8 billion in debt related to Oncor Electric Delivery Co., a Texas utility, attempted to block Berkshire Hathaway's bid to acquire Oncor.

Akzo Nobel

In August 2017, Akzo Nobel, a Dutch painter and chemicals company, said it had ended the dispute with Elliott. PPG Industries, American rival, has sought to take over Akzo Nobel, Elliott has been urging talks between the two and finally taking legal action as part of an effort to replace Akzo Nobel chairman Antony Burgmans. During the conflict, Elliott became Akzo Nobel's largest shareholder, with a stake of around 9%.

Real estate

Since 2010, Elliott's Management has expanded investment in depressed real estate. It has been active in Japanese and German real estate and in 2015 views Spain and Italy as offering attractive investment opportunities. Now, according to the New York Times , he has "a team of analysts and portfolio managers in London, Hong Kong and Tokyo and more than $ 2 billion worth of investments." In the US, he "focuses on filling the gap where banks have to control their loans by participating in direct financing with developers."

In 2013, Elliott Management teamed up with Time Equities on a 63-storey commercial and real estate project in New York, and took ownership of Silverpeak Real Estate Finance, a commercial real estate lender.

The New York Times reported in May 2014 that Elliott Management financed the development of 5 Beekman Street, a 130-year-old building in one of Manhattan's first skyscrapers, a 287-room hotel and a 46-story condominium called Beekman. This project will be done by GFI Capital Resources, a New York real estate company.

Country debt

Some of Elliott's securities trades are hard on state debt.

After Argentina failed in state debt in 2002, Elliott, who has Argentine bonds with a face value of $ 630 million, is now worth $ 2.3 billion, refusing to accept Argentina's offer of less than 30 cents. Elliott won a judgment against Argentina in US and UK courts but did not collect payments. In October 2012, an Elliott subsidiary, NML Capital, set up a foreclosure in Ghana from ARA Libertad, an Argentine naval vessel, intended to seize in accordance with a court ruling that gave it over $ 1.6 billion in Argentine assets. The November 2012 hearing in New York, which ended with a verdict for NML and against Argentina; lawyers call it "the state debt trial of the century." In a letter published in the Financial Times, lawyers Andreas F. Lowenfeld and Peter S. Smedresman defended the position of NML.

Elliott exposes corruption in the Republic of Congo in an effort to enforce valuations of more than $ 100 million in bank debt default. In 2008, Elliott bought $ 32.6 million in debt on loans issued by Congo. In 2002 and 2003, the British court awarded Elliott more than $ 100 million for these debts. During this case, US President George W Bush used a constitutional clause that prevented confiscation of Congo's assets in the United States by hedge funds. Brice Mackosso, a campaigner for greater transparency and fighting corruption in the government of the Republic of Congo, stated that if it were not for funding like Elliott, "we would not know the facts about how our country's wealth was taken." After Elliott's investigation yielded evidence of corruption, the government set about $ 90 million of debt that Elliott paid less than $ 20 million.

In 1995, Elliott bought a $ 20 million par value of perishable bank debt in Peru. After extensive litigation and various attempts by Elliott to be resolved, the court granted a $ 58 million hedge fund, including interest due.

NEO: Paul Elliott Singer B: 8/22/1944 is an American hedge fund ...
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References


FirstEnergy shares soar after 'transformational' investment
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External links

  • Official website
  • Current Holdings in Fintel.io

Source of the article : Wikipedia

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