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Tag: hedge

US hedge fund wants break-up of £35bn Shire

US hedge fund wants break-up of £35bn Shire

Business
A US hedge fund is demanding a string of divestments at the FTSE-100 biotech group Shire, underlining growing interest among activist investors in large European companies.Sky News has learnt that Sachem Head Capital Management is urging the board of Shire, which specialises in treatments for rare diseases and neuroscience products, to explore a sale or spin-off of several of its assets.The move, which has been raised during discussions between the hedge fund and Shire directors in recent months, comes after Sachem Head disclosed during the summer that it had acquired a small stake in the pharmaceuticals group.Sachem Head's call for Shire to assess the merits of a separation of some of its divisions has not yet resulted in a formal letter to the company's board, according to a person close...
The Buffett Challenge — hedge funds vs. index funds — 9 years on

The Buffett Challenge — hedge funds vs. index funds — 9 years on

Finance
Nearly 10 years ago Berkshire Hathaway CEO (and arguably one of the best investors on Earth), Warren Buffett, issued a challenge to the hedge fund industry — a $ 1 million bet that they could not put together a portfolio of hedge funds that would outperform an S&P 500 Index fund over a 10-year period.Buffett was convinced the combination of active stock-picking and high costs would result in lagging market performance, and he was willing to put his money where his mouth was.One company stepped up to the challenge. Protégé Partners LLC selected five hedge funds (the names of the funds have not been disclosed publicly), and Buffett selected the Vanguard Admiral Shares S&P 500 Index Fund.The 10-year period began January 1, 2008, which means we are in the final year of the challenge. W