Key Takeaways
- • Ran Li, a senior analyst at Lone Pine Capital, is launching Half Sky Capital, a long-short equity hedge fund based in London with expected startup capital of $110 million, including backing from his mentor Stephen Mandel Jr.
- • Half Sky Capital is expected to begin trading within approximately six months, marking another "Tiger Grandcub" fund emergence from Mandel's Lone Pine Capital platform, which itself was founded by a Tiger Cub.
- • Rhode Island's state pension fund is redeeming its $35 million investment from Luxor Capital Partners after consultant Cliffwater flagged severe underperformance, citing 18.3 percent average annual losses from March 2014 through February 2016 due to poor investment selection and inadequate hedging.
- • SunEdison shares collapsed 14.8 percent to $1.27, trading one penny above its all-time low, as the renewable energy company engages creditors regarding a potential debtor-in-possession facility and faces NYSE delisting risk if the stock sustains sub-$1.00 pricing.
- • Valeant Pharmaceuticals rallied nearly 5 percent on the day to extend a three-day gain of approximately 23 percent, while William Ackman's Pershing Square Capital Management posted a 25 percent loss over an unspecified period.
Summary
Ran Li, a senior analyst at Stephen Mandel Jr.'s Lone Pine Capital in Greenwich, Connecticut, is establishing Half Sky Capital, a new long-short equity hedge fund headquartered in London. According to Reuters, the fund is expected to launch with approximately $110 million in capital, including support from Li's mentor Mandel. Trading is anticipated to commence within six months. This development represents another generational link in the Tiger Management lineage: Mandel is classified as a Tiger Cub after working under Julian Robertson at Tiger Management, while Li qualifies as a Tiger Grandcub through his tenure at Mandel's firm.
In separate pension fund activity, Rhode Island's state pension plan is redeeming its $35 million investment from Luxor Capital Partners, managed by Christian Leone. The redemption follows a recommendation from consulting firm Cliffwater, which identified substantial underperformance at the $4 billion fund. Cliffwater attributed the losses to "poor investment selection and inadequate hedging," noting that Luxor posted an average annual loss of 18.3 percent between March 2014 and February 2016. The pension plan had originally committed $50 million to Luxor in 2014 and is expected to receive the $35 million redemption by June 30.
In equity market movements, SunEdison's stock declined an additional 14.8 percent to $1.27, hovering one penny above its all-time low. The renewable energy company is reportedly in discussions with creditors regarding a potential debtor-in-possession facility, raising bankruptcy concerns. Sustained pricing below $1.00 would trigger potential delisting from the New York Stock Exchange. Meanwhile, Valeant Pharmaceuticals extended a three-day rally, gaining nearly 5 percent and bringing its cumulative gain over the period to approximately 23 percent. Pershing Square Capital Management, William Ackman's flagship fund, reported a 25 percent decline.
In separate pension fund activity, Rhode Island's state pension plan is redeeming its $35 million investment from Luxor Capital Partners, managed by Christian Leone. The redemption follows a recommendation from consulting firm Cliffwater, which identified substantial underperformance at the $4 billion fund. Cliffwater attributed the losses to "poor investment selection and inadequate hedging," noting that Luxor posted an average annual loss of 18.3 percent between March 2014 and February 2016. The pension plan had originally committed $50 million to Luxor in 2014 and is expected to receive the $35 million redemption by June 30.
In equity market movements, SunEdison's stock declined an additional 14.8 percent to $1.27, hovering one penny above its all-time low. The renewable energy company is reportedly in discussions with creditors regarding a potential debtor-in-possession facility, raising bankruptcy concerns. Sustained pricing below $1.00 would trigger potential delisting from the New York Stock Exchange. Meanwhile, Valeant Pharmaceuticals extended a three-day rally, gaining nearly 5 percent and bringing its cumulative gain over the period to approximately 23 percent. Pershing Square Capital Management, William Ackman's flagship fund, reported a 25 percent decline.
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